The startup scene has become synonymous with the technology industry, as software applications can be spun up and commoditized at an ever-increasing pace these days. Even as venture capitalists flock to the booming tech sector, the established business of investments must keep pace.

“The way we think of it is combining the craft of old-school venture capital with a modern operating team. Since most founders these days are product-oriented, our job is to think like product people, not investors,” said Greg Sands (pictured), founder and managing director of Costanoa Ventures.

Sands spoke with John Furrier (@furrier), co-host of theCUBE, SiliconANGLE’s mobile livestreaming studio, during the recent BigData NYC event in New York. Sands discussed the art of venture capital, company founder concerns and working with company culture.

Protecting an investment with careful management

“You want to get through the narrows of product-market fit and the beginnings of scalable sales and marketing,” Sands said. Matching a company’s product to the market is one of the key roles investors can play in nurturing new businesses. At this point in the business lifecycle, it’s all about setting a foundation for later growth.

A little growth right out of the gate is a dangerous thing. Companies might chase early successes with massive investments beyond the scope and scale of their current business. Because of this tendency, it’s helpful to have an investor who looks at the whole picture to see how fast a company should go, Sands explained.

On the other hand, founders worry about audacious investors who try to run the business. “I think the idea that the board has certain responsibilities and management has certain responsibilities is incredibly important. A venture capital know-it-all in the boardroom telling CEOs what to do destroys value,” Sands said.

Investors also need to be concerned about company culture. Diversity, inclusion and company behavior are all important issues. Investors must call out the company when it violates these standards, Sands furthered, recommending investors contribute to the company culture in meaningful ways with workshops and events.

Watch the complete video interview below, and be sure to check out more of SiliconANGLE’s and theCUBE’s coverage of BigData NYC 2017.

Photo: SiliconANGLE