Following the record-breaking peaks for venture funding in 2021, investors’ approach to capital deployment have shifted, with some calling it a “return to due diligence.”
RBCx Capital vice president Sue Umapathy, who’s been given the nickname ‘Capital Whisperer’ by her team, shared the firm’s approach to due diligence with BetaKit, confirming that timelines for that process have been increased.
“Diligence, it should always be a thing,” Umapathy told BetaKit in an interview at Startupfest, adding that investors are going “back to the roots.”
“There are VCs who have done it the right way throughout and there are VCs who have had FOMO and stepped in a little bit earlier.”
“It’s diligence with rigor … They’re trying to look for the best gems out there, that’s why there’s increased diligence,” she added.
Umapathy manages relationships with venture capital and growth equity firms for RBCx Capital’s fund finance and fund investment strategies. In her 13 years at RBC, Umapathy has built her experience around coaching, leading teams, as well as managing business units, both on the personal and commercial front.
RBCx Capital is the investment management and fund finance arm of RBCx. RBCx invests in technology companies and venture capital funds, amassing a portfolio that includes Amplitude Ventures, Arctern Ventures, Golden Ventures, Ripple Ventures, Staircase Ventures, and StandUp Ventures, among others.
When asked about RBCx Capital’s own approach to due diligence, Umapathy emphasized the evaluations are “all about the team.”
“The business that you’re building—it’s a representation of that team and what a unique and differentiated opportunity you’re presenting to the world as a possible potential value-add.”
In her full conversation with BetaKit, which you can listen to below, Umapathy talks more about RBCx Capital’s developing AI investment thesis, the firm’s sourcing strategy, and its synergy with RBCx’s banking team, which she said is founder-focused.