| |NOVEMBER 20249CIOReviewnext funding rounds after investing in them, and we specialize in selling portions of our ownership on the secondary market. This approach enables us to provide quicker returns to our investors, as we can sell shares for liquidity shortly after the startups achieve higher valuations.Targeting the Right StartupsWe typically look for startups with monthly recurring revenues between $100,000 and $500,000. Our primary interest lies in businesses that automate human workflows and use data, which essentially encompasses AI technologies. We focus on software companies that integrate APIs with data sets, enabling them to make data-driven decisions through automation.This approach allows these companies to perform tasks traditionally handled by one or more humans at a lower cost. By automating the roles of many, they can provide solutions that were previously not economically viable. We are particularly excited about companies that can automate the work of thousands of people, as this creates substantial value for customers. While we prioritize strong investments in the U.S. and Canada, our current focus is less on emerging markets.The Value of Investor EngagementWe raise capital from individual high-net-worth investors, including single families and family-owned conglomerates worldwide. These diverse sources provide the funds we invest in startups. When these investments are made, we facilitate connections between our limited partner (LP) investors and the startups. Often, LPs contribute additional value by assisting in various ways, like sourcing investments, conducting due diligence and making staffing or customer introductions. I believe that the effectiveness of a VC fund manager is limited by their available time. By leveraging the extensive network of our LPs and fostering communication between them and the startups, we can significantly enhance the support and resources available to the companies we invest in.Investing Beyond Capital I strongly believe that doing favors for others is one of the fastest ways to accelerate your career and achieve success. For instance, I hired May Ron Shark, who was an outstanding student in my venture capital class at Chapman University. I encouraged him to focus on sourcing startups or fundraising and on building connections by doing favors for everyone he meets.At networking events, even if a contact doesn't align with the investment criteria, it's important to engage with them, listen attentively, and offer assistance. This approach can lead to unexpected connections; for instance, after conversing with one person, he might encounter someone else who could benefit from that initial discussion. By consistently helping others, he can quickly build a positive reputation and, over time, become quite influential. Our primary interest lies in businesses that automate human workflows and utilize data, essentially encompassing AI technologies. We focus on software companies that integrate APIs with data sets, enabling them to make data-driven decisions through automation
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