A disciplined approach to investing that involves identifying promising assets and the potential to “make the world a better place” helped Social Discovery Ventures deliver a strong performance in 2023 and position it for success in 2024, says its CEO, Alex Plesakov.
SDV operates as the single-family office of entrepreneur Dmitry Volkov, the founder of Social Discovery Group, whose investments include Woebot Health, an AI-powered behavioral health tool.
Volkov, a self-described serial entrepreneur, has long been invested in dating technology, so “social discovery came naturally” as an investment for SDV as technology advanced into other social and behavioral areas, Plesakov said. “Dating, everything that relates to social networks and relationships within the internet, somehow influences mental well-being and, indirectly, longevity,” he said.
“We are not only passionate about our work, but we also execute our responsibilities with an emphasis on financial and business hygiene,” said Plesakov, who joined the company more than a decade ago. In that time, SDV’s assets have yielded above-market returns. A focus on artificial intelligence helped fuel last year’s gain, he said.
SDV’s portfolio includes venture capital and private equity — in particular, companies focused on social discovery, mental health and longevity, ranging from seed stage to pre-IPO — as well as investments like real estate and publicly traded companies. Its venture portfolio includes Patreon, Flo, Academia and Sunflower Labs.
“As a family office and as an investment fund, we prioritize rational decision-making over emotional impulses,” Plesakov said. “Every investment opportunity undergoes a rigorous process of due diligence scoring. We have created scoring models for every asset class.”
SDV looks for investments with a deep underlying value. “It’s a very structured and systematic approach,” looking at an investment’s value in the broader market rather than “narrow investment opportunities,” Plesakov said. Woebot, for example, uses an AI chatbot to help people manage mental and behavioral health issues. It’s moving toward Food and Drug Administration approval, he said.
Plesakov sees acceptance of AI as a part of life, growing over time, with the stigma associated with relying on a computer fading as people become more comfortable with AI features like chatbots. Company research, he said, shows that people are often more satisfied with a Woebot interaction than a human conversation, because the chatbot remembers previous conversations and can put things in context.
“The level of technology that allows us to build these things is going to be increasing every month,” he said. “We are not only passionate about our work, but we also execute our responsibilities with an emphasis on financial and business hygiene as well as a commitment to making the world better.”