Friday, January 22, 2016

Venture Capital Profile on Delta-v Capital with Dan Williams



Dan Williams grew up in the Dallas area, attended Plano East High School and went to MIT and came back to Texas where now lives in Dallas and works as Vice-President of Delta-v.

Delta-v was founded in 2009 and is investing out of their 3rd fund.Delta-v is unique compared to most typical growth equity firms.    Their strategy is to provide secondary liquidity to existing shareholders in late stage growth companies.  That could be providing partial liquidity to existing management teams, cashing out employees who left the company, or providing liquidity to other investors including angels and other venture funds.  .  Often times, people will take 10-20% off the table to pay taxes or buy a house.  As their funds have grown, they’ve expanded into primary growth capital and work on both primary and secondary investments.

They look for companies that have removed business model risk.  They typically seek $10-$20M in revenue and above. To date, they have invested in over 20 deals. Most of their investments have revenue above $20M.   They look for those who are getting towards cash flow breakeven and are growing at least 20% per year. Delta-v invest as little as $2M and up to $20M.

Delta-v invests broadly across technology sectors.  The current Delta-v portfolio includes investments in enterprise SaaS, security, consumer anddigital media, SaaS, healthcare IT and more.    

They don’t have strict requirements around taking a board seat or a target ownership percentage.  They can be the less active investor. When needed or desired, they do sit on boards and have leadership that has come from the startup industry and have a great deal o f experience.  Dan was previously with Cisco’s  Corporate Development team focused on Cloud and Analytics  and understands what strategic acquirers look for.  Delta-v understands what it takes to run a company as well as the technology behind it.  They have contacts and connections and can also help with hiring.

They were the first investors in Drilling Info. That’s the only deal they’ve done in Texas so far but want to do more.  The Dallas community is growing well.  They’re impressed with the number of companies coming up and are looking to find more opportunities outside of the coasts. 


Dan said it’s helpful to meet a company who has given you advance information.   He likes to track their progression over time.  It is still interesting to meet companies below $10M in revenue to track them over time.

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