LP Updates
January 28, 2026
4 min

The EBITDA Venture Capital Mandate

We are building Second Order Ventures Fund I for investors who are tired of "Growth-at-all-Costs."

Our LPs didn't invest in a narrative; they invested in a disciplined, repeatable model for building infrastructure-level AI.

The Second Order Mandate

Proven Value Only

We allocate capital where value already exists—targeting EBITDA-positive businesses or those with a clear 6-12 month path to profitability.

This isn't about being conservative. It's about being disciplined. We don't fund experiments. We fund infrastructure assets that are software-first, modular, and governed from day one.

Structural Governance

We take majority positions to enforce discipline and ensure LP interests are protected by structure, not just "momentum."

When you own the majority, you control the roadmap, the burn rate, and the exit timeline. You're not at the mercy of founder whims or market hype. You're building a durable asset.

Infrastructure Dominance

While others chase "tools," we back the platforms that own the ecosystem.

The difference:

  • Tools are features that get commoditized
  • Infrastructure is the layer that tools depend on

We invest in the coordination layer—communication, data, compliance—that becomes more valuable as more tools plug into it.

Portfolio Proof

Our portfolio companies have achieved:

  • 100% compliance across enterprise-scale AI deployments
  • $30M+ operational optimization for a $10B+ life insurance company
  • 60M+ monthly throughput at scale (Taalk.ai)

This isn't growth-at-all-costs. This is disciplined infrastructure dominance.

The AI Infrastructure Layer is Being Built Today

We are backing the companies that will own it.

Strategic allocations remain for LPs who value durability over hype.


Ready to discuss Fund I allocations? Schedule 30 minutes.

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DW

Derek Wang

Founder & Managing Partner

Derek founded Second Order Ventures to build infrastructure-level AI businesses that create compounding, defensible returns. He focuses on operational transformation, governance engineering, and EBITDA discipline.

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