B. Pagels-Minor, Founder and CEO of DVRGNT Ventures, not only understand the importance of Black media, they have created venture capitalist firm to invest in their success. While a lot of people talk about investing money in the culture, they are doing it at the highest levels.
How did you establish your venture capitalist firm DVRGNT Ventures, and what motivated you to become involved in the venture capital industry?
In early 2022, I shifted to full-time consulting, helping companies in Middle America achieve Product-Market Fit and secure Series A and Series B investments. Despite my connections with various VC funds as an investor, my clients struggled to overcome barriers in attracting investment. Traditional VC frameworks relied heavily on existing networks between companies and investors. Recognizing the need for more support, I decided to establish my own firm. The goal was to create an ecosystem that fully supported these promising companies and showcased them as attractive investment opportunities.
What is your investment philosophy or approach? How do you select the ventures you choose to invest in?
Our investment philosophy focuses on companies with novel solutions that solve difficult problems, led by coachable and capital-efficient founders who prioritize building strong teams and partnerships. Three pillars drive our investments:
Economic equity: We strive to increase salaries in region by $5k-$10k, significantly impacting families’ trajectories and promoting economic equity in our target regions.
Combatting systemic bias: Through education, mentorship, and leadership development, we create an ecosystem that addresses systemic bias, fostering diverse and inclusive communities for positive societal change.
Talent funnel for long-term growth: We invest in talent to drive industry evolution and long-term growth, establishing a talent funnel within our ecosystem for derisked returns and sustainable growth.
Could you share some success stories or notable ventures you have invested in? How did you contribute to their growth and success?
While DVRGNT Ventures has not made any direct investments yet, I, as an angel investor and limited partner in other funds, have a track record of successful investments. Notably, I have established a strong partnership with In Pink, a marketplace catering to women in creative roles. In this collaboration, I have provided valuable guidance to their product team, aiding in the evolution of their offerings and defining the concept of Product-Market Fit within their marketplace. This partnership is one of the most fulfilling relationships within my investment portfolio.
As someone who reviewed several pitches, tell us what are some commonalities of ones you have approved.
My preferred investments are those that offer compelling and unique approaches to problem-solving, accompanied by founders and teams who demonstrate a clear ability to tackle and succeed in providing solutions that resonate with consumers. An outstanding example is a team whose founders were so synchronized that they completed each other’s sentences. Furthermore, their extensive client pipeline, driven not only by the product but also by the founders’ likability and positive working relationships, exemplifies the attractiveness of such investments. These “no-brainer” opportunities are among my favorites due to their promising potential for success.
How do you handle risk assessment and risk management? What strategies do you employ to mitigate potential risks?
As a VC fund manager, we diligently assess risks through thorough due diligence, diversification, and continuous monitoring. Active involvement and contingency planning with portfolio companies, coupled with our extensive network support, help mitigate potential risks. Staying updated on market trends and regulatory changes allows us to adapt our strategies effectively. Our goal is to ensure the long-term success of our investments and the resilience of our portfolio companies.
Do you have any limitations or restrictions on the stage or size of ventures you invest in? Are you open to investing in international ventures?
Our investment focuses exclusively on Middle America, encompassing the South, Midwest, and Mountain West regions. We specialize in investing in pre-seed and seed-stage companies. Our investment size typically ranges up to $10,000,000 or less per round.
How do you handle conflicts or disagreements between the venture and the investors? Can you provide examples of how you have resolved such issues in the past?
As a new venture firm, there have not been any conflicts yet. However, we foresee establishing an LP advisory committee to represent LP interests and address conflicts if they arise. Our primary aim is to partner with investors who share and understand our vision, minimizing the likelihood of conflicts in the future.
At a time where we have a better appreciation for importance of mental health, how do you implement the practice of self-care?
I prioritize work-life balance by setting boundaries on my work hours and allowing quality time with my family. Engaging in hobbies like gaming, reading fiction, and playing sports help me transition away from work and maintain optimal mental health. Recognizing the importance of disconnecting from work, I actively pursue activities that promote a healthy mindset.
Be’n Original
