Long-Duration Investment Model for Venture Capital

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Long-Duration Investment Model for Venture Capital

Inspired by a conversation on:

How I Invest with David Weisburd

How I Invest with David Weisburd

E215: The Pursuit Uncorrelated Returns in Venture Capital w/Dan Kimerling

Host: David Weisburd

Timestamp: 00:29:17 - 00:30:45

Listen to Episode • View Podcast • All Ideas from How I Invest with David Weisburd

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Direct Quote

"We want to actually be co-owners of companies along with their management teams and have an extremely long duration view of that relationship."

Market Gap

Short-term venture capital models pressure companies for quick returns.

Traditional venture capital often operates on a short-term timeline, focusing on quick exits and high turnover of investments. This can lead to pressure on startups to prioritize rapid growth over sustainable practices, potentially compromising long-term success. Many companies are forced to seek additional funding too frequently, which can dilute ownership and disrupt their strategic vision. Investors may be more concerned with markups and immediate returns rather than fostering a genuine partnership with entrepreneurs. The lack of patience and long-term commitment from capital providers can stifle innovation and reduce the overall potential of the startup ecosystem.

Summary

Decians Capital is pioneering a long-duration investment model that allows for deeper partnerships with portfolio companies. By committing to a longer timeline—up to 14 years—this approach enables the fund to support companies through various growth phases without the pressure of immediate returns. This model contrasts sharply with the prevalent venture capital culture that seeks quick wins and rapid exits. Instead, Decians aims to build co-ownership relationships with entrepreneurs, focusing on compounding value over time. This could lead to more robust growth and sustainable business models, as companies are not constantly seeking to appease short-term investor demands.

Categorization

Business Model
Investment Fund
Target Founder
Subject Matter Expert
Difficulty
High
Time to Revenue
> 1 year
Initial Investment
> $10,000

Potential MRR (18-24 months)

Conservative
$10,000 - $20,000 MRR
Moderate (Most Likely)
$50,000 - $100,000 MRR
Optimistic
$200,000 - $500,000 MRR

* Estimates assume solo founder/bootstrap scenario with competent execution

Scores

Clarity
9/10
Novelty
8/10
Feasibility
6/10
Market Potential
8/10
Evidence
7/10
Overall
7.6/10
Found on September 19, 2025 • Analyzed on September 19, 2025 4:31 PM

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How should I validate this investment fund idea before building it?

2:34 PM

Great question! For a investment fund idea like this, I'd recommend starting with these validation steps:

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  2. MVP approach: Build a simple landing page to test demand
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Concentrated Venture Capital Fund for Financial Services

Decians Capital's approach involves creating a concentrated venture capital fund that focuses specifically on early-stage financial services companies. By limiting the number of investments to around 10-15, the fund can provide in-depth support and active engagement with each company, thereby increasing the chances of achieving superior returns. This model contrasts with traditional funds that spread their investments too thinly across many companies, resulting in less involvement and oversight. The targeted approach is designed to leverage the long-term potential of financial services, which is often overlooked in the tech-centric venture capital landscape. The fund aims to attract limited partners looking for differentiated exposure and willing to commit to a longer investment horizon.