They focus on investing in startups that are 2-3 years old and operate in areas such as e-commerce and healthcare. Diamond State Ventures typically invests in rounds with 3-4 participants and has notable sponsors like Southeast Interactive Technology Funds and North Bridge Venture Partners & Growth Equity. Their investments are structured as subordinated debt with warrants, preferred equity, or a combination of those securities, and they can serve as a lead or co-investor in transactions up to $25 million.