Popular venture capital models often leave the interests of entrepreneurs, investors, and fund managers misaligned. Typical closed-ended funds incentivize managers to deploy funds quickly and leave fund managers unable to modify capital deployment plans through changing market conditions, exposing capital to unpredictable risks and pressuring founders to reach liquidity events on rigid, superficial timelines.

As a group of founders, investors, and startup advisors, Diode’s management team plans to address the pain points across the ecosystems of traditional investment vehicles. Diode’s evergreen structure aligns and incentivizes stakeholders with different goals, objectives, and timelines towards collective success.

(1) Investors are more likely to achieve their best portfolio results through objective-based strategies, balancing value optimization with capital management and liquidity. (2) Entrepreneurs can focus on growing their businesses sustainably and operate on timelines that fit their execution strategy. (3) The fund does not need to force capital deployment, distributions, or redemptions at the cost of fund performance.

With interests aligned and flexibility in the timing of capital raising and deployment, execution strategies become robust, liquidity events become larger, and varying stakeholder objectives become united in pursuing our common goal.