Opportunity
Pursue asymmetric opportunity: concentrate where there is an edge, and diversify only against ruin.
Most venture firms decline what falls outside their thesis, and most of the time that is correct. It is also how a category gets missed for the years in which entering it was inexpensive. This office keeps a door for the company that fits nowhere, and treats an accumulation of such companies as information: when enough of them point the same way, the direction is a vertical and earns an arm of its own.
The gate is published rather than described on request. A vertical earns a Ventures arm when it has deal flow of its own and a Capital arm when it has a balance sheet, and neither is granted at formation. Publishing the gate is what makes it a gate; a threshold that only exists in a meeting is a preference.
What it refuses
Declining a company for want of a category. Where something fits no existing vertical it is underwritten rather than turned away, because a category that is missed is missed for the four or five years in which entering it was cheap.
Where it is practised
Position size is set by conviction and downside by survival — two separate questions, answered separately, with the losses published alongside the rest.