Benefits

Local Presence, Global Reach

Early stage venture capital has traditionally been a local business, driven by local relationships with entrepreneurs, venture investors, professional service providers, universities, and corporations. Yet, as information has become more accessible, the industry has seen the rise of great companies in locations outside the traditional hubs of technology. Consequently, the DFJ Network was created as a way of building scale without destroying the local model that is so integral to the success of the venture industry. Innovative international companies such as DFJ Network successes Baidu (Beijing), Skype (Estonia) and buy.at (United Kingdom) have demonstrated the need to expand venture opportunities globally and the DFJ Network’s ability to do so and capitalize on it.

Federation of Independent Funds

The DFJ Network is a federation of independent funds, each making its own investment decisions.  As of  2009, there are 17 active Partner Funds and several other fully-committed Partner Funds in the DFJ Network spanning the globe. Collectively, the Partner Funds in the DFJ Network invest in regions covering 70% of the world’s GDP. Through this remarkable system, the DFJ Network offers better support for its entrepreneurs, better due diligence options for its Network Partners, and ultimately better returns for its LPs.

Global Rolodex

Much of the value venture capitalists bring to a portfolio company is through their contacts, including potential customers, investors, strategic partners, executive talent, and the media. Each of these facets of “Rolodex Power” is leveraged across the DFJ Network for the benefit of portfolio companies. With each investment, the Partner Funds benefit from the “collective intelligence” of the DFJ Network by being able to provide portfolio companies with introductions and competitive advantages that would not otherwise exist. The result is a strong synergy that helps to solve problems, structure deals, and serve as a powerful, distributed business development network. The venture capital industry relies heavily on intellectual and social capital to stay competitive. The DFJ Network increases its power as the collective intelligence of its portfolio of Partner Funds, technology companies, investors, and corporate allies expand.

A Community of Leaders

Partner Funds and many of their LPs and portfolio companies are brought together several times each year to build direct personal relationships through events such as DFJ’s Annual Summits, University business plan competitions, and other seminars and “think tank” events. These forums have helped to build business relationships, which in turn have led to intelligence sharing and deal syndication.