Diagram builds companies internally—validating problems and sometimes securing pilot customers or an MVP before recruiting founders—then stays closely involved from day zero, intentionally creating only about 2–3 startups per year in each focus area, and since Fund III has also started investing in outside startups it didn't create. This same systematic approach, which helped produce outcomes like Dialogue's IPO in fintech, is now being applied to climatetech through capital-efficient software bets like ReliON, with continued backing from pre-seed through exit via a dedicated Opportunity Fund.