David Lee, 39

David Lee, 39

Co-founder, XG Ventures
Director, sales and business development for Google in Europe, Asia, and Latin America
Investments (a sampling): Tapulous, Plusmo, Posterous, Aardvark

When David Lee evaluates an early-stage company, he first wants to be impressed by the technology. But as the company grows, he says, the people become at least as important. "If the market changes, these people have to adapt," he says. "If they’re not coachable, or not good at communicating," their odds of success are a lot lower. And he points out that companies don’t need a huge initial public offering in order for their early-stage investors to do really well. He says he expects to see a lot of exits (in this case, acquisitions) in the $20 million to $60 million range. "That’s maybe not a valuation we dream about, but it is one we’re comfortable with," he says. "You’re not waiting around for an IPO that’s not going to happen."