Darabi challenges the glamorous image of venture capital by explaining the economics of an emerging manager. A small fund's management fee must support the entire firm, and TMV's founders invested their own money and went without salaries for years.

A two-percent fee on a small fund produces limited operating revenue.
Emerging managers may need to self-fund early operations.
Darabi and her partner did not pay themselves for four years.
Launching a fund resembles building a startup.
Access to desirable cap tables requires persistence and favors.

“Marina and I not only you know, anchored our first fund with our own capital, but we didn't pay ourselves for four years.”
Soraya Darabi · 44:50

“if you're an e M, it's a lot more like a startup where you're burning the midnight oil.”
Soraya Darabi · 45:08

#emerging managers#fund economics#venture capital#bootstrapping

Myth Buster49:30

Why Seed Investing Is Not a Company-in-a-Box Exercise

Darabi rejects the idea that accelerator templates make company formation or seed investing predictable. TMV spends substantial time on diligence and actively searches for businesses in markets that have not yet converged, including profitable companies that may not want venture capital.

Pre-seed and seed investing are not perfected sciences.
Access and luck coexist with disciplined diligence.
TMV's diligence can span an entire quarter.
The firm searches for ideas outside standard venture pipelines.
Profitable founders who do not need capital can be especially attractive.

“pre seed and seed investing UM isn't a science, and it's certainly not a science that anyone has perfected.”
Soraya Darabi · 49:39

“Those are the companies that we find most exciting because as former operators. We know how to appeal to them, and then we also know…”
Soraya Darabi · 51:01

#due diligence#seed investing#accelerators#venture capital

Hot Take· 3

Hot Take33:45

How Female Inheritors Could Reshape Venture Capital

Darabi connects the global intergenerational wealth transfer with changes in who controls family-office capital. As more women inherit and direct assets, she expects modern limited partners to demand access, relationships, education, and investments aligned with a broader view of impact.

A vast pool of assets is moving between generations.
Women increasingly control inherited family wealth.
Past family structures often directed women toward philanthropy rather than investment.
Modern family-office LPs value access, learning, and personal relationships.
Global family offices can reshape venture's future capital base.

“there's a trillion dollars of assets that are passing through the hands of one generation to the next.”
Soraya Darabi · 34:24

“for the first time in history, over fifty of those assets inheritors actually women.”
Soraya Darabi · 34:36

#wealth transfer#family offices#women investors#venture capital

Hot Take58:24

Why Peer Mentors May Matter More Than Traditional Mentors

Darabi says she never had a mentor or sponsor in the conventional sense, despite receiving meaningful support from generous senior figures. She argues that peers confronting the same challenges at the same time can help one another move faster through shared knowledge and an abundance mentality.

Generous supporters do not always fit the formal mentor label.
Traditional mentorship may be less available outside corporate structures.
Peers can exchange timely, situation-specific guidance.
Shared experience creates practical empathy.
An abundance mentality helps peer networks compound.

“I'm not sure mentors really exist outside of corporate America anymore.”
Soraya Darabi · 59:24

“the peer mentor people who are going through the same thing as you at the same time”
Soraya Darabi · 59:35

#mentorship#peer networks#career development#community

Hot Take54:43

ESG's Core Problem Is an Unstable Definition of Impact

Darabi argues that public-market ESG has disappointed partly because impact lacks a consistent definition and measurement standard. TMV instead defines the world it wants to finance and looks for purpose-driven companies capable of producing demonstrable change and strong returns.

Impact terminology and measurement remain inconsistent.
Avoidance of sin stocks is only one possible expression of impact.
Investors can define impact through desired real-world outcomes.
Purpose-driven companies can still produce outsized financial returns.
Portfolio construction should examine companies rather than rely solely on a bank's ESG sleeve.

“E s G investing, certainly in the public markets, has had diminished returns historically because the definition has been still bizarre and so all over…”
Soraya Darabi · 55:09

“rather we are investing in the way the world should look from our perspective.”
Soraya Darabi · 55:58

#esg#impact investing#public markets#measurement

Explainer· 2

Explainer13:19

The Five Sectors Behind TMV's Purpose-Driven Portfolio

TMV concentrates on care, financial inclusion, the future of work, transportation, and technology-enabled sustainability. Darabi describes purpose as a specific investment mandate supported by data, not a generic claim about doing good.

The care economy spans healthcare, elder care, pet care, and related services.
Financial inclusion targets wealth creation, education, and literacy.
Future-of-work companies should improve outcomes for workers and employers.
Transportation investments emphasize supply-chain transparency and efficiency.
Sustainability applies from process through product.

“we try to be as specific as possible when we allude to the impact that our investments could potentially make”
Soraya Darabi · 13:24

“diverse founders and diverse employee bases and diverse cap tables is not charity. It's simply good for business.”
Soraya Darabi · 14:43

#impact investing#care economy#fintech#sustainability#future of work

Explainer26:36

How TMV Balances Core Stakes With Initial-Interest Checks

TMV makes core seed investments targeting meaningful ownership and follows selected companies through later rounds. It also makes smaller initial-interest checks when an idea is unusually audacious, evidence will take years to emerge, or another investor gained earlier access.

Core checks target substantial seed-stage ownership.
TMV follows on through Series A and may protect its stake at Series B.
Initial-interest checks provide exposure to uncertain or access-constrained opportunities.
Some Fund One outliers began as smaller checks.
The approach avoids indiscriminate spray-and-pray investing.

“initial interest means I'm interested, but your idea is so audacious it won't prove itself up for three or four years.”
Soraya Darabi · 27:42

“what's interesting in looking back at some of our outliers from fund one, it came from those initial interest checks.”
Soraya Darabi · 28:23

#seed investing#portfolio construction#ownership#venture capital

Story· 3

Story02:30

Building the New York Times' Early Social-Media Partnerships

Darabi recalls joining the New York Times when social media was still labeled “buzz marketing.” Her role combined platform demographics, potential revenue, strategic partnerships, and helping journalists represent themselves authentically on emerging channels.

The Times sought early partnerships with emerging social platforms.
The role evolved from buzz marketing to digital partnerships and social media.
Journalist authenticity mattered alongside audience growth and revenue.
Early platform work created relationships Darabi retained throughout her career.

“we were aiming to be the first media property in the world to partner with companies that our household named today but back in the…”
Soraya Darabi · 03:29

“how the journalists could authentically represent themselves on new mediums.”
Soraya Darabi · 04:04

#social media#new york times#digital media#partnerships

Story10:23

How Foodspotting Turned Food Photos Into a Discovery Product

Foodspotting followed an observable behavior: food was among the most common subjects posted on early Instagram. The team combined visual discovery, geolocation, dish-level recommendations, and trusted reviews, gaining a first-mover advantage before selling to OpenTable.

The concept followed existing user behavior rather than inventing a new habit.
The app recommended dishes instead of merely ranking restaurants.
Photos and accredited reviews strengthened discovery.
Scarce competition in geolocation apps created a first-mover advantage.
Darabi later believed the company sold too soon.

“we observed that the most commonly posted photos on Instagram were of food, and so by following that lead, we basically built an app around…”
Soraya Darabi · 10:35

“Looking back in hindsight, I think we sold that company too soon.”
Soraya Darabi · 11:41

#foodspotting#product discovery#geolocation#startups

Story41:29

The Mars Shot Turning Food Waste Into Garden-Safe Plastic

Darabi describes a materials company using crushed produce such as potato skins to create biodegradable plastic. The opportunity combines food science, consumer products, and enterprise packaging, with adoption becoming compelling if pricing approaches that of conventional alternatives.

The material begins with crushed produce waste.
It can potentially replace plastic in consumer and industrial uses.
The product biodegrades rather than persisting as waste.
Comparable pricing could make corporate switching economically practical.
The concept is audacious but aligned with clear global demand.

“They use crushed produce like crushed potato skins to make plastic but biodegrades.”
Soraya Darabi · 41:58

“This is plastic that you don't throw away, you just toss in the garden”
Soraya Darabi · 42:54

#materials science#bioplastics#food waste#sustainability

Takeaway· 2

Takeaway05:55

Why Recessions Can Create Startup Formation Windows

The financial crisis disrupted established careers but also gave laid-off workers and aspiring founders time to pursue ideas. Darabi argues that seed capital can remain available for exceptional founders even when the broader economy is under severe pressure.

Layoffs can release talent into entrepreneurship.
Economic disruption creates openings for side projects and new companies.
Early-stage funding may remain available during recessions.
Periods of instability can accelerate technological convergence.

“as the economy was bottling out like any recession, it also offered a really interesting opportunity for entrepreneurs”
Soraya Darabi · 06:20

“there's always going to be seed funding for a great founder and a great idea.”
Soraya Darabi · 07:05

#recession#startups#entrepreneurship#seed funding

Takeaway12:13

The Unwritten Social Skills Behind Fundraising and M&A

Darabi says young founders may discover that fundraising and acquisitions rely partly on relationship-building conventions absent from business books. Coming from a non-business family made navigating those unwritten rules particularly complicated.

Fundraising and M&A involve social conventions as well as financial analysis.
Relationship-building can influence letters of intent and term sheets.
Founders without business-family exposure may lack informal knowledge.
Business books do not fully teach the interpersonal side of transactions.

“so much of m and as about whining and dining.”
Soraya Darabi · 12:38

“there are certain elements of this game raising venture and ultimately trying to exit your company that you don't learn from a business book”
Soraya Darabi · 13:01

#m&a#fundraising#relationships#founders

Frameworks in this episode

Community-Built Proprietary Deal Flow

Non-Obvious Opportunity Screen

Reverse-Pitch Venture Support Model

Small-Bet Judgment Training

Insights & moments

⚡Myth Buster· 2

Why Running a Small VC Fund Is More Startup Than Glamour