# Stereo Capital

Stereo Capital is an Asset Manager based in Palo Alto, United States.

## Overview

- **Organization type:** Asset Manager
- **Headquarters:** Palo Alto, United States
- **Region:** North America
- **Address:** 228 Hamilton Ave, 3rd Floor, Palo Alto, CA 94301, United States
- **Founded:** 2013
- **Assets under management:** Undisclosed
- **Website:** stereocap.vc
- **LinkedIn:** https://www.linkedin.com/company/stereocapital

## Regulatory record

- **Reports private funds:** No

## About

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.

## Sectors

- Enterprise Software
- Cybersecurity
- PropTech
- EdTech

## People

- Dmitry Dakhnovsky — Co-founder
- Jim Smith — Co-founder

## 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.

### 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.

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Last updated: 2026-06-03T20:00:00.000Z

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