Reflections and Learnings
As I was preparing my speech for our annual DILA Day and reflecting on what I wanted to share, I thought about the journey we started 12 years ago, the lessons learned from investing in startups for over a decade, and how those lessons have shaped the principles that now guide us in DILA.
In this reflection I kept coming back to the fact that Venture Capital is not just a business; it’s closer to an art or a philosophy. It’s a way of living that brings daily learnings, it feels like a rollercoaster, and it very often tests your resilience. Through our experiences, particularly the challenges of recent years, we have learned what truly matters in building a successful and enduring venture capital fund.
Here are the key lessons we’ve learned:
1. Venture capital is hard — and that’s okay. Venture capital is a long-term game where results take years, sometimes decades, to materialize. Bad news often comes first: companies struggle, markets waver, and startups that aren’t going to succeed tend to fail quickly. For those that succeed, progress can feel slow. But we’ve also learned that the good news does arrive, and great news often comes later in the investment cycle — sometimes at the very end.
The storms that hit private capital markets from 2022 to 2024 served as a reminder of this reality. Many fund managers chose to quit during that period, but we chose to persevere. Showing DPI (Distributions to Paid-In Capital) isn’t easy; it takes time. Even TVPI (Total Value to Paid-In Capital), which is a more immediate indicator, demands transparency, patience, and discipline. What sets successful funds apart is persistence, a long-term vision, and unwavering commitment to core principles.
2. Trust and reputation are our greatest assets. One question we often ask ourselves is: Why do founders choose us? Why do we win opportunities to participate in the best deals? The answer is simple: trust. Founders choose to work with us because of the reputation we’ve built — not just as investors, but as true value-added partners.
This trust extends to our investors and partners as well. At DILA, we embrace the responsibility that comes with that trust by focusing on transparency, delivering results, and building real relationships. It’s not just about showing up during good times; it’s about being there with brutal honesty when challenges arise.
3. Specialization and focus drive excellence. One of the most valuable lessons we’ve learned is the power of specialization. Early on, we explored opportunities across industries and business models. Today, we know that our ability to evaluate companies within specific areas of expertise — aligned with our thesis — is a true competitive advantage.
We don’t aim to be experts in everything; instead, we strive to excel in the areas where we compete. This means understanding the businesses we invest in better than anyone else. It also means asking the right questions: What makes this company different? How will it win? And, once we decide to invest, how can we be most helpful to founders? Where can we make the biggest difference?
4. Managing risk is critical. Failure is inevitable in venture capital. A significant percentage of our portfolio will not succeed — and that’s part of the model. We’ve learned that our winners need to be truly exceptional in size and scale to follow the Power Law of returns. But we’ve also learned to let go of investments that aren’t working, to avoid falling into the sunk cost fallacy, and to remember that every dollar invested has an opportunity cost.
5. It’s all about relationships. At its core, venture capital is a people business. It’s about the teams we invest in, the relationships we build with investors, partners, and allies, and the culture we foster within the DILA team.
Being a true partner means supporting companies from beginning to end, not just during the good times but also when they face their toughest challenges. It also means aligning with investors who share our long-term vision. The backbone of everything we do at DILA is our network. It’s what allows us to access the best founders, secure equity in the best deals, and drive outcomes and exits. Relationships and networks aren’t built overnight; they require trust, credibility, and consistency.
Our New Principles. These lessons have evolved into new principles that now guide how we operate at DILA:
- Great work = great results. This principle has become a cornerstone for us. Great outcomes are the result of great work: rigorous diligence, thoughtful decision-making, and relentless commitment to adding value to our portfolio companies. It’s a never-ending process, but working harder and smarter is a significant differentiator.
- Focus on long-term relationships. Whether it’s the founders we back or the investors who back us, we’ve learned the importance of choosing partners who share our long-term vision. As Naval Ravikant wisely said: “Play long-term games with long-term people.”
- Honesty and trust are foundational. One of the most important lessons we’ve internalized is the value of honesty. Being brutally honest with ourselves, our founders, and our LPs isn’t just a value — it’s a necessity. It allows us to adapt, learn, and make better decisions moving forward.
These principles don’t just apply to our business; they apply to all areas of life: our health, relationships, work, and family. . . And it comes down to this: Work harder than anyone else, think long term, and do it with honesty and integrity. . . with that you will undoubtedly increase your chances of success!
In venture capital, as in life, every experience is a teacher. Over the past 12 years, we’ve faced challenges and failures (our great teachers), celebrated successes, and learned lessons that now define who we are as a firm. From our side, we promise to keep working as intelligently as possible, building long-term relationships, and doing so with transparency, ethics, and honesty.
Looking forward to the next 12 years of learnings!
