Exploring the Diverse Ventures of a Serial Entrepreneur in the World of Startups and Literature
I had the pleasure of interviewing DC Palter, startup founder, angel investor, author, and self-described sake snob. DC founded two successful startups in the enterprise IT space, then transitioned to investing in and mentoring startups focusing on energy sustainability. And he’s recently published a mystery novel about a Silicon Valley startup titled To Kill a Unicorn.
How did you get started in the startup world?
I started as an energy engineer working at GM, Honeywell, and Kobe Steel. I eventually decided I wanted to move to the business side of technology, so I went back for an MBA. After graduating, I joined a startup, and it was like, wow, this is so much better than corporate life. I enjoy doing a little of everything rather than specializing in one thing, so it was a great fit for me.
You have a background as an operator. How did that help you as you shifted gears into becoming an investor?
That’s really the secret sauce. Spending 25 years building startups means I know them from the inside. More than just investing, I enjoy working with young founders to help them get their businesses off the ground. While financial returns are important, I’m more interested in seeing the companies I invest in succeed and bring important innovations to market. That’s why I invest my time and money in finding solutions for climate change, which is without a doubt, the defining challenge of our generation.
What is it that excites you about investing?
Startup investing is very different from investing in public stocks. You have to find the right startups and spend considerable time reviewing everything from the technology to the market size to the skills of the founding team. You have to use your crystal ball and guess what the world will be like in 5–10 years. And as one of just a handful of investors in the company, you get to provide input to the founders to help them with their challenges. So you’re part of the team. You get to live vicariously through their success. It’s like building a startup yourself without the day-to-day responsibility.
How many startups have you invested in so far?
I’ve made 50 investments in 37 startups on my own (I’ve invested in multiple rounds of a few.) Those investments I’ve made on my own. Those are mostly in the climate tech space. I’ve also invested in 5 group funds where we pool our money and jointly do the diligence. Those 5 funds have invested in 10–25 startups each, some of which I brought to the groups and others I had little involvement with other than being part of the group investment. Those investments are sector agnostic and reflect the expertise and interest of a large group of investors.
What has been your biggest challenge when it comes to finding the “right deals”?
Hardtech is hard to do. Unlike software, physical products take years of development before they can get to market, then huge amounts of capital to build production facilities. The really big ideas, like new battery chemistries, go straight to the venture funds that can invest tens of millions. Finding startups with more specialized technology that can get to market with a smaller budget isn’t easy without making it into a full time job. Fortunately, angel groups like Chemical Angels, and accelerators like CleanTech Open and Venturewell Aspire where I mentor give me a chance for deep interactions with climatech startups that lead to a few investments.
What major trends do you expect to see in technology innovation over the next 5 years that excites you?
In climate tech, there’s a lot to be excited about. Every day I see new solutions to improve sustainability: better batteries, green hydrogen, water filtration, fiber from agriculture waste, energy efficient buildings. The list goes on and on. I really look forward to seeing these innovations come to market.
If you had to share, “words of wisdom,” with a Founder who’s looking for investment, what would they be?
There’s a huge misunderstanding that investors are looking for great products. We’re not. We’re looking for great investments. When you pitch to us, tell us why this is a great investment instead of how wonderful your product is.
How did you go from being a startup founder to a novelist?
I’ve always enjoyed writing, and that’s why I was more comfortable doing technology marketing rather than development. I’ve previously written 2 non-fiction books, but always dreamed of writing novels. Once my last company was acquired, instead of jumping into building another startup, I decided to focus on writing. But of course, my novel is about my world of startups and Silicon Valley.
And sake?
Living in Japan, I came to appreciate good sake. There’s a lot of bad sake out there, but the good stuff is amazing. I enjoy visiting the sake breweries around Japan, seeing their production, and tasting their various sakes. Later this year I’ll actually be heading back to Japan to work at a sake brewery for a short while to make sake myself.
How can our readers follow you on social media?
https://www.linkedin.com/in/dc-palter/
https://twitter.com/dc_palter
https://dcpalter.medium.com/
https://pitchingangels.com
And where do we find the novel?
It’s available in paperback and ebook form from most online booksellers. It’s on Amazon at:
https://www.amazon.com/Kill-Unicorn-DC-Palter/dp/1950627616
This was very insightful. Thank you so much for joining us!
