Questions founders ask us

Digital Ocean Ventures Starter is a Polish VC fund investing at pre-seed and seed. We manage PLN 45 million. In 2024 we were one of the first four funds selected by PFR Ventures for the Starter 2.0 programme, co-financed with European funds.

Funding from DOV is an equity investment on market terms: we take shares and share both the risk and the potential upside with the company. Grant-style accounting rules do not apply here. Because the fund includes public money, the company takes on a few extra obligations, such as regular reporting, providing data needed for programme reporting and marking the support received from European Funds. We go through the details at the term sheet stage.

The fund has a fixed lifetime, so we usually plan to exit each company within 5-8 years of investing. The most common paths are selling our shares to a fund joining in a later round or selling the company to a strategic buyer. From day one we talk with founders about who could be a natural acquirer of the business.

We look for technology companies in two areas. The first is digital transformation: AI-driven automation, business software, cybersecurity and RegTech. The second is fintech, including embedded finance and insurtech. We prefer B2B and B2B2C models, where customer retention and distribution build a lasting advantage. We invest in Poland and across Central and Eastern Europe, as well as in US startups with a Polish connection, such as Polish founders or a team in Poland. Our portfolio includes Graftcode, Replenit, UniPerks, Demoboost, Gaius-Lex, 1Security and Muzaic.

We come in as early as possible: at pre-seed and seed. Revenue is not a requirement. We want to see a team that knows the problem inside out and first evidence that customers actually have it: conversations, pilots, letters of intent or first paid deployments. You can start talking to us before the company is even set up, but the investment itself requires an incorporated company.

We don't invest in companies outside digital transformation and fintech, in purely consumer (B2C) businesses, in software houses or service companies without their own product, or in projects with no ambition to grow beyond their local market. We also pass when a company's cap table would make it hard to raise future rounds.

The team weighs the most: industry knowledge, a mix of business and technical skills, full commitment and a willingness to learn. We prefer teams of at least two founders. Next we look at the market and how fast it grows, a problem that exists outside the pitch deck, an edge built on technology, data or distribution, and unit economics. We also check whether the business can reach the scale venture capital requires and has realistic paths to further rounds and an exit.

After our round, founders should hold a clear majority of shares and have strong motivation for the years ahead. Typical problems are large stakes held by people no longer working in the company, too much equity in the hands of early investors, or shares given away in exchange for services. If you see an issue like this in your company, tell us upfront. It can often be sorted out before the investment.

That is one of the first questions we ask AI companies. We look for an advantage that grows over time: proprietary data, deep integration with the customer's processes, domain expertise and a strong distribution channel. We are cautious about products whose value rests mainly on access to a model, because each new release quickly catches up with them.

Our first cheque is up to PLN 3 million. In total we can invest up to PLN 5 million in a single company, because we reserve part of the capital for follow-on rounds in companies that grow according to plan. We invest in exchange for shares or through a convertible loan agreement (CLA) with a valuation cap. We are happy to join rounds alongside other funds and business angels.

Yes. We can act as lead investor: we set the terms, run due diligence and help bring in co-investors. We are also glad to join rounds led by other funds that share our approach to building companies.

Yes. We use a standard template based on market terms. We share it with founders early, so they can compare our offer with others without time pressure.

Ideally 2-3 months before you plan to close your round. Our process includes customer calls and a review of your financial model, so applying a week before closing usually doesn't give us enough time to make a sound decision. We are happy to meet founders before their round and follow the company's progress.

After you apply, we set up an intro call. If we see a fit, we move on to a deeper analysis: meetings with the whole team, calls with customers and references, and a review of the financial model. Then we propose a term sheet, run legal and financial due diligence, and the fund's Investment Committee makes the decision. The last step is the investment agreement and closing. Our fastest "yes" came one day after meeting the company :)

We don't sign NDAs at first contact, just like most VC funds. We talk to many companies, including ones in adjacent spaces, so please keep confidential information out of your deck. At the due diligence stage, when the company shares detailed data, we can sign a confidentiality agreement.

We say no often, also to good companies. Not every business should grow on VC money: sometimes the market grows too slowly, sometimes the economics don't scale in a venture model, and sometimes the founders' goals are better served by growing without an investor. In that situation an honest no is the best thing we can offer. If the company develops in a way that changes the picture, we invite you to get back in touch.

Every company has a lead partner who stays in regular contact. We help with product discovery, go-to-market and pricing strategy, hiring key people, preparing for future rounds, and connecting with corporate customers and investors. We take part in key decisions through the supervisory board or regular meetings, and we can provide follow-on funding from the fund's reserve in later rounds. We treat our time and commitment as a real contribution to the company. If you are looking for a job at one of our portfolio companies, check out our Jobs page.

Failure is part of early-stage investing and we factor it in when making decisions. We expect honesty and early warning about problems, because that gives us time to find a solution together: a pivot, bridge financing, a sale of the company or an orderly wind-down. Founders who went through a hard moment with integrity remain important partners for us when they start their next project.