Popular venture capital models often leave the interests of entrepreneurs, investors, and fund managers misaligned. Typical closed-ended funds incentivize managers to deploy funds quickly and leave fund managers unable to modify capital deployment plans through changing market conditions, exposing capital to unpredictable risks and pressuring founders to reach liquidity events on rigid, superficial timelines.
As a group of founders, investors, and startup advisors, Diode’s management team plans to address the pain points across the ecosystems of traditional investment vehicles. Diode’s evergreen structure aligns and incentivizes stakeholders with different goals, objectives, and timelines towards collective success.
(1) Investors are more likely to achieve their best portfolio results through objective-based strategies, balancing value optimization with capital management and liquidity. (2) Entrepreneurs can focus on growing their businesses sustainably and operate on timelines that fit their execution strategy. (3) The fund does not need to force capital deployment, distributions, or redemptions at the cost of fund performance.
With interests aligned and flexibility in the timing of capital raising and deployment, execution strategies become robust, liquidity events become larger, and varying stakeholder objectives become united in pursuing our common goal.
A wide reach means we fly beyond the echo chamber. Our team and offices span from Silicon Valley all the way to the Southeast.
Diode’s investment profile captures returns from venture investments and high volatility asset markets, designed to produce returns in uncertain and shifting markets – all within one evergreen investment vehicle.
Diode’s management team has started and scaled companies to unicorns, achieved numerous exits and IPOs, and brings diverse experience to select and grow the fund’s investments.
The fund maintains in-house operations and development staff, specialized in startup acceleration, to help our portfolio companies fill stop-gaps, reduce bottlenecks, and out pace competitors.