Diligent Diligence
January 2023
A different year. Same great fund
2023 is finally here! We had a good 2022 at OVF and as we look forward to what may potentially be a bear market, we at the fund remain bullish on hungry, driven early-stage founders in Oregon and Southern Washington.
As I reflect on 2022, one of the things I am most proud of is the consistency in our fund culture, particularly around evaluating potential investments in partnership with our Venture Partners. OVF is meticulous with due diligence and, if 2022 has taught the venture ecosystem anything, it is that this is still the way to go.
I have been reading on social media of several VCs discussing the “return of rigorous due diligence.” After riding the wave of a bull market flush with dry powder for over eight years, the past few months have been sobering for investors and founders alike, as private and public markets face the whiplash of high interest rates and the shadow of a recession. But that is not all: Frauds like FTX and Frank are reminders of how investing practices have faltered in the recent past, and the importance in spending time understanding the business and the founders before investing.
There is another angle worth consideration, though. Due diligence is often viewed as the exploit of the investor. I think there is a case to be made to founders and CEOs that there is a treasure trove of learning to be reaped from any due diligence process. Whether a fund invests in you or not, ask for the findings and learn about your business from a different vantage point – it could prove valuable for your business strategy or even for refining your fundraising process.
If you are an early-stage founder in Oregon or Southern Washington, reach out to us. Our target is to invest up to $20M this year in pre-seed, seed, and Series A startups.
In upcoming newsletters, I will share in more detail how we evaluate companies. Till then, wishing you all a great start to 2023! At least until the first Federal Reserve meeting of the year, at the end of this month.
Alline Akintore leads due diligence efforts for the fund