Defy operates with a distinctive "Sage" model where current CEOs and serial founders like Brian Lee and Sujal Patel get fund-level carry and deeply embed with portfolio companies as hands-on operators, sometimes even taking interim leadership roles and personally bringing in hundreds of millions in follow-on capital. The firm also "hatches" new companies internally by having partners identify opportunities, do the research and prototyping themselves, then match concepts with founders—functioning partially like a startup studio while running a traditional venture fund.