From Operator to Investor: The Launch of DataPower Ventures
Dec 19, 2024
Gavin Freeman
David Yakobovitch’s journey to venture capital began as a tech operator, scaling data and AI products at startups ranging from early-stage to growth-stage, and eventually at Google. In 2019, while still in his operator role, David launched the DataPower Ventures syndicate.
David launched DataPower Ventures because he wanted to have more skin in the game with startups outside of the small amounts of equity he received as an early employee. He wanted to use his expertise in both tech and data to identify and back the best founding teams that would generate alpha. This vision laid the foundation for DataPower Ventures, which has since grown to include a portfolio of over 30 early-stage companies. Three of those companies have since been acquired and nine have received markups—some with multiple rounds of follow-on investments.
One standout investment David mentioned is Ash Wellness, a digital health startup specializing in remote diagnostic testing.
Building an LP Network Through Relationships
David attributes the success of DataPower Ventures to his relationship-driven approach. His decade of experience in data and AI helped him build a network of potential LPs, many of whom he met by hosting community events across tech hubs like New York, San Francisco, LA, and Seattle.
DataPower’s first deal in 2020—Nomad Data—took a lot of work to fundraise. David had over 100 conversations with prospective LPs to close only a dozen commitments. His emphasis on fiduciary responsibility and transparency resonated with investors.
The Evolution to Fund+
While DataPower Ventures continues to operate as a syndicate, David also recently launched his first fund on Sydecar’s platform. Sydecar’s Fund+ will enable him to invest in early-stage companies with greater speed and flexibility.
With Fund+, he doesn’t need to pitch hundreds of investors to secure commitments for a single deal. With capital already committed to the fund, he can act quickly when the next “Nomad Data” comes along, signing and wiring funds immediately. This also reduces the strain on his investors, who might not have time to review every deal he identifies. By consistently delivering strong opportunities, David has earned their trust and confidence in his judgment, which enables him to make decisions on behalf of his investors.
The addition of a fund to their investment strategy represents a significant milestone for DataPower Ventures, solidifying its ability to execute follow-on investments and provide high-value support to portfolio companies. To provide additional support to his portfolio companies, David leverages an operating partner network of 40+ professionals who offer expertise in areas like finance, go-to-market strategies, and product development. This network was built specifically to provide hands-on assistance to the companies he invests in, creating a win-win scenario where he helps businesses grow—improving returns for investors—while building trust with founders. This trust not only strengthens existing relationships but also enhances his reputation as a reliable partner, increasing the likelihood of being invited to participate in future deals.
Advice for Emerging Managers
David’s journey from syndicate lead to fund manager offers valuable lessons for emerging managers.
Focus on a niche you know inside and out: DataPower Ventures’ thesis is rooted in David’s decade of experience in data and AI. Credibility with founders and LPs stems from his deep understanding of the space.
Build relationships through transparency: Consistency, clear communication, and accessibility are key to earning the trust of investors and founders alike.
Leverage essential tools and networks: Platforms like Sydecar provide essential tools to scale effectively, from launching SPVs to managing funds. Additionally, his operator network of 40+ professionals offers specialized expertise in areas such as finance, go-to-market strategies, and product development, creating a unique support system for portfolio companies.
Looking ahead, David remains focused on his mission: supporting innovative founders and scaling DataPower Ventures into a leading name in AI-driven B2B SaaS investing. For him, it’s about staying committed to the work—deal by deal, fund by fund.
For more on how Sydecar supports emerging fund managers like David, check out our page here:
