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On how emerging managers can show performance with David Dana, Head of VC Investments at EIF
Today, we are joined by David Dana. David is the Head of VC Investments at the European Investment Fund, leading the Disruptive Tech & Innovation VC Team with 10 investment professionals. He contributed to developing the new #InvestEU financing program of the EU, aiming at ensuring the technological sovereignty of Europe.
Previously, he has been in charge of EIF investments in VC funds in France, Israel, and of the Luxembourg Future Fund. David was also overviewing EIF activities with Accelerators. Over 15 years, invested +€3.5B of capital in over 120 VC funds, mainly following deeptech strategies. Previously, spent 6 years as an investment professional at SGAM AI Funds of Funds and as a senior advisor in Corporate Finance at PWC.
David is also a regular contributor to podcasts, and speaker at industry events, an expert in deeptech fields such as AI, Space, Web 3.0, Blockchain, Quantum Technologies, Semiconductors, Tech Transfer.
This episode is part of the State of European VC Fundraising Report đź‘€
Together with our good friends at Isomer Capital and Floww, we’ve made a report filled with graphs, beautiful narratives, and video interviews.
Drawing from our past 300+ podcast episodes, combined with the most recent market information and Isomer Capital’s vaulted data treasures, we aim to reveal the effects of the tech reset on the European fundraising market. We also explore how top European VCs have adapted their strategies, tactics, and operational guides in response.
Chapters:
* 04:03 Initial Thoughts on Emerging Managers
* 04:35 Evaluating Added Value and Differentiation
* 07:28 Challenges with Deep Tech Investments
* 07:50 Assessing Company Performance and KPIs
* 09:52 Co-Investors and Market Feedback
* 10:29 First Meeting and Initial Questions
* 11:29 Track Record and Full Cycle Experience
* 12:43 Challenges with Exits in Europe
* 14:38 Diligence and Replicability of Exits
* 16:13 VC Management Experience
* 17:47 Fund Models and Financial Theory
* 20:20 Importance of a Strong Fund Model
* 22:31 Submitting Proposals to EIF
* 24:10 Combining Skills Within a Team
* 27:42 Due Diligence for Second and Third-Time Funds
* 33:20 Advice for Emerging Managers
✍️ Show notes
Value propositionBefore performance can even be considered, David Dana emphasises the unique value proposition of the emerging manager. What differentiating element or added value can they bring to the market that isn’t already covered by existing players?
Technical and operational expertiseEmerging managers should have a team with strong technical and operational expertise, particularly in deep tech segments like AI, space tech, quantum, and semiconductors. This isn’t just about bringing capital to entrepreneurs but also significant added value.
VC management expertiseBesides technical knowledge, it’s crucial for the team to have VC management expertise. Understanding the VC market, how to manage a fund, and interact with investors and LPs is a must.
Track record and angel investmentsFor first-time funds, a concrete, extensive track record might not be available. Instead, David Dana looks for evidence of wise angel investments or involvement in successful ventures that can serve as indicators of the team’s ability to source and select promising companies.
Assessing business angel investmentsGiven the early-stage nature of many investments, particularly in deep tech, Dana doesn’t expect to see DPI (Distributions to Paid-In capital). Instead, he evaluates the company’s progress and potential based on KPIs like revenue and growth rate.
Case-by-case analysis of track recordThere is no “magic number” of investments that defines success. Dana conducts a detailed analysis of each company in the portfolio, assessing the co-investors, attraction, expected KPIs, and the company’s development since the time of investment.
Fund modelDana insists on a realistic and well-constructed fund model. He looks for experience with full investment cycles and at least one exit, even if it’s not profitable. Understanding the technicalities of running a VC fund is essential, and the team must show they can follow through on their strategy and promises to LPs.
Importance of demonstrating VC understandingDana underlines the importance of demonstrating a thorough understanding of VC principles. Teams must be aware of the basic assumptions of VC and should be able to explain any deviations from these norms in their approach.
Substance over style in proposalsEmerging managers must ensure that their pitch decks and proposals are well thought out and substantive. A poorly constructed fund model or lack of a clear strategy can lead to immediate dismissal.
The role of differentiationLastly, emerging managers with limited track records must clearly articulate their raison d’être. They must convince potential investors like the EIF of their potential for higher returns and their unique position in the market.
👋 Upcoming in-person events we’re hosting
There’s nothing we like better than getting Europe’s best and brightest together with good food, drinks, and conversations that go truly deep.
SuperVenture Side event on Realizing DPI | 5th of June | 🌍 Berlin, Germany | Join the waitlist.
European VC Awards | 4th of June | 🌍 Berlin, Germany | Get tickets.
đź“… Upcoming virtual events
From time to time, a podcast is just not enough. Check out our roundtables and live events below.
🏆 Firesides with the winners of the European VC Awards
Fireside with the Newcomer of the Year Winner | 13/6, 12-1:30 PM | Register here. Hundreds of new VC funds come to market every year. But only ONE will win Newcomer of The Year. This is your chance to meet the winner firsthand.
Fireside chat with the Winner of the Hall of Fame | 25/6, 12-1 PM | Register here.Hear firsthand from a true giant upon whose shoulders the European tech ecosystem stands tall.
🗓️ The VC Conferences You Can’t Miss
There are some events that just have to be on the calendar. Here’s our list, hit us up if you’re going, we’d love to meet!
EBAN Congress Tallinn 2024 | 📆 20-22 May | 🌍 Tallinn, Estonia
SuperVenture | 📆 4 - 6 June | 🌍 Berlin, Germany
Nordic LP Forum & TechBBQ | 📆 11-12 September | 🌍 Copenhagen, Denmark
North Star & GITEX Global | 📆 14 - 18 Oct | 🌍 Dubai, UAE
GITEX Europe 2025 | 📆 23 - 25 May 2025 | 🌍 Berlin, Germany
Trying to get in front of European VCs and LPs? The 2024 EUVC Media Kit is out - check it out here, and let’s talk. 💌
This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.eu.vc/subscribe
View all episodes
By eu🔵vcToday, we are joined by David Dana. David is the Head of VC Investments at the European Investment Fund, leading the Disruptive Tech & Innovation VC Team with 10 investment professionals. He contributed to developing the new #InvestEU financing program of the EU, aiming at ensuring the technological sovereignty of Europe.
Previously, he has been in charge of EIF investments in VC funds in France, Israel, and of the Luxembourg Future Fund. David was also overviewing EIF activities with Accelerators. Over 15 years, invested +€3.5B of capital in over 120 VC funds, mainly following deeptech strategies. Previously, spent 6 years as an investment professional at SGAM AI Funds of Funds and as a senior advisor in Corporate Finance at PWC.
David is also a regular contributor to podcasts, and speaker at industry events, an expert in deeptech fields such as AI, Space, Web 3.0, Blockchain, Quantum Technologies, Semiconductors, Tech Transfer.
This episode is part of the State of European VC Fundraising Report đź‘€
Together with our good friends at Isomer Capital and Floww, we’ve made a report filled with graphs, beautiful narratives, and video interviews.
Drawing from our past 300+ podcast episodes, combined with the most recent market information and Isomer Capital’s vaulted data treasures, we aim to reveal the effects of the tech reset on the European fundraising market. We also explore how top European VCs have adapted their strategies, tactics, and operational guides in response.
Chapters:
* 04:03 Initial Thoughts on Emerging Managers
* 04:35 Evaluating Added Value and Differentiation
* 07:28 Challenges with Deep Tech Investments
* 07:50 Assessing Company Performance and KPIs
* 09:52 Co-Investors and Market Feedback
* 10:29 First Meeting and Initial Questions
* 11:29 Track Record and Full Cycle Experience
* 12:43 Challenges with Exits in Europe
* 14:38 Diligence and Replicability of Exits
* 16:13 VC Management Experience
* 17:47 Fund Models and Financial Theory
* 20:20 Importance of a Strong Fund Model
* 22:31 Submitting Proposals to EIF
* 24:10 Combining Skills Within a Team
* 27:42 Due Diligence for Second and Third-Time Funds
* 33:20 Advice for Emerging Managers
✍️ Show notes
Value propositionBefore performance can even be considered, David Dana emphasises the unique value proposition of the emerging manager. What differentiating element or added value can they bring to the market that isn’t already covered by existing players?
Technical and operational expertiseEmerging managers should have a team with strong technical and operational expertise, particularly in deep tech segments like AI, space tech, quantum, and semiconductors. This isn’t just about bringing capital to entrepreneurs but also significant added value.
VC management expertiseBesides technical knowledge, it’s crucial for the team to have VC management expertise. Understanding the VC market, how to manage a fund, and interact with investors and LPs is a must.
Track record and angel investmentsFor first-time funds, a concrete, extensive track record might not be available. Instead, David Dana looks for evidence of wise angel investments or involvement in successful ventures that can serve as indicators of the team’s ability to source and select promising companies.
Assessing business angel investmentsGiven the early-stage nature of many investments, particularly in deep tech, Dana doesn’t expect to see DPI (Distributions to Paid-In capital). Instead, he evaluates the company’s progress and potential based on KPIs like revenue and growth rate.
Case-by-case analysis of track recordThere is no “magic number” of investments that defines success. Dana conducts a detailed analysis of each company in the portfolio, assessing the co-investors, attraction, expected KPIs, and the company’s development since the time of investment.
Fund modelDana insists on a realistic and well-constructed fund model. He looks for experience with full investment cycles and at least one exit, even if it’s not profitable. Understanding the technicalities of running a VC fund is essential, and the team must show they can follow through on their strategy and promises to LPs.
Importance of demonstrating VC understandingDana underlines the importance of demonstrating a thorough understanding of VC principles. Teams must be aware of the basic assumptions of VC and should be able to explain any deviations from these norms in their approach.
Substance over style in proposalsEmerging managers must ensure that their pitch decks and proposals are well thought out and substantive. A poorly constructed fund model or lack of a clear strategy can lead to immediate dismissal.
The role of differentiationLastly, emerging managers with limited track records must clearly articulate their raison d’être. They must convince potential investors like the EIF of their potential for higher returns and their unique position in the market.
👋 Upcoming in-person events we’re hosting
There’s nothing we like better than getting Europe’s best and brightest together with good food, drinks, and conversations that go truly deep.
SuperVenture Side event on Realizing DPI | 5th of June | 🌍 Berlin, Germany | Join the waitlist.
European VC Awards | 4th of June | 🌍 Berlin, Germany | Get tickets.
đź“… Upcoming virtual events
From time to time, a podcast is just not enough. Check out our roundtables and live events below.
🏆 Firesides with the winners of the European VC Awards
Fireside with the Newcomer of the Year Winner | 13/6, 12-1:30 PM | Register here. Hundreds of new VC funds come to market every year. But only ONE will win Newcomer of The Year. This is your chance to meet the winner firsthand.
Fireside chat with the Winner of the Hall of Fame | 25/6, 12-1 PM | Register here.Hear firsthand from a true giant upon whose shoulders the European tech ecosystem stands tall.
🗓️ The VC Conferences You Can’t Miss
There are some events that just have to be on the calendar. Here’s our list, hit us up if you’re going, we’d love to meet!
EBAN Congress Tallinn 2024 | 📆 20-22 May | 🌍 Tallinn, Estonia
SuperVenture | 📆 4 - 6 June | 🌍 Berlin, Germany
Nordic LP Forum & TechBBQ | 📆 11-12 September | 🌍 Copenhagen, Denmark
North Star & GITEX Global | 📆 14 - 18 Oct | 🌍 Dubai, UAE
GITEX Europe 2025 | 📆 23 - 25 May 2025 | 🌍 Berlin, Germany
Trying to get in front of European VCs and LPs? The 2024 EUVC Media Kit is out - check it out here, and let’s talk. 💌
This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.eu.vc/subscribe