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Stereo Capital
Dmitry Dakhnovsky and Jim Smith run Stereo Capital, a Palo Alto growth-stage firm backing data-generating companies like Arctic Wolf Networks and Iterable.
Stereo Capital
Stereo Capital was formed in 2013 by Dmitry Dakhnovsky and Jim Smith, who combined Dakhnovsky’s three decades of technology entrepreneurship with Smith’s two decades of venture investing at Mohr Davidow Ventures. The firm operates from 228 Hamilton Avenue in Palo Alto, California, and describes growth-stage investing as its sole focus. The firm targets companies that generate measurable data as a core product or operational advantage. Its strategy spans enterprise software, cybersecurity, and proptech. Confirmed positions include Arctic Wolf Networks, Iterable, Zumper, Human Security, Weave (which went public), and Wrike (acquired by Citrix). The team does not publish stage definitions but emphasizes high-velocity teams, winner-take-all dynamics, and a commitment to rapid, transparent decision-making. Stereo Capital is a compact operation led by its co-founders. Dakhnovsky brought operational experience from chessclub.com and TEKAMA, while Smith previously backed OpenDNS, Pluribus Networks, and RingCube at Mohr Davidow. The firm has a frequent co-investment relationship with ACME Capital, reflecting shared leadership history. September 2023: No verifiable recent operational event surfaced in public disclosures. The firm’s architecture blends Dakhnovsky’s founder-operating background with Smith’s institutional venture track record — a hybrid posture that lets them underwrite both product velocity and go-to-market execution inside the same generalist growth mandate.
General information
Firm type
Generalist
Year founded
2013
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Palo Alto
Corporate office
228 Hamilton Ave, 3rd Floor, Palo Alto, CA 94301, United States
Principals
Dmitry Dakhnovsky
Co-founder
Jim Smith
Co-founder
Sector focus
Frequently asked questions
Who runs investment decisions at Stereo Capital?
Co-founders Dmitry Dakhnovsky and Jim Smith lead the investment process. Dakhnovsky has over 30 years of experience building and scaling technology companies, while Smith spent eleven years as a General Partner at Mohr Davidow Ventures. The firm states it does its own investment work and aims to be a close partner to founders.
Is Stereo Capital a single family office or a venture firm?
Stereo Capital operates as a venture firm, not a family office. It is structured as a generalist asset manager founded by two experienced technology investors. The Nada Family Foundation appears in records as a related philanthropic entity, but the firm itself is not a family office.
What investment stages does Stereo Capital target?
Growth stage is the firm’s sole stated focus. It does not publish specific check sizes or revenue thresholds, but the portfolio includes companies like Weave before its IPO and Wrike before its acquisition by Citrix, indicating an appetite for later-stage venture rounds.
Which sectors does Stereo Capital invest in?
The firm’s generalist mandate covers enterprise software, cybersecurity, and proptech. Known positions include Arctic Wolf Networks in cybersecurity, Iterable in enterprise marketing technology, and Zumper in proptech. The team has also backed edtech ventures through Dakhnovsky’s prior operating history.
Does Stereo Capital co-invest alongside other firms?
Yes. ACME Capital is a frequent co-investment partner, and the two firms share leadership history. The Stereo Capital website emphasizes a collaborative posture, though the firm does not publicly detail its syndication process or LP structures.
Does Stereo Capital participate in fund commitments or only direct deals?
Public sources indicate Stereo Capital makes direct investments in growth-stage companies. There is no available information about commitments to external funds or participation in club deals beyond the disclosed direct portfolio.
How is Stereo Capital related to the Nada Family Foundation?
The Nada Family Foundation appears in firm records as a related philanthropic structure. Public materials do not describe the foundation's grant-making focus, its relationship to the firm's investment operations, or how it is governed relative to Stereo Capital.
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