The Lead Edge eight investment criteria

How do you scale a growth equity firm from a $52M first fund to $5B across six funds—without losing discipline or trust? In this episode, I talk with Brian Neider, Managing Partner at Lead Edge Capital, about building a durable growth equity platform by combining rigorous metrics with deep relationship-building. Brian shares how Lead Edge created a differentiated LP model centered on high-net-worth individuals who actively support portfolio companies, why communication and education compound trust over decades, and how a strict investment framework helps avoid negative alpha as the firm scales. We also discuss why exits matter more than paper gains, how to think about “walking dead” portfolio companies, and what truly energizes long-term investing.

Highlights:

• Why Lead Edge raised its first fund from individuals, not institutions
• How 700+ LPs became a competitive advantage, not a liability
• The importance of disciplined metrics before falling in love with founders
• How structured LP engagement improves deal sourcing and outcomes
• Why communication, education, and transparency compound trust
• The danger of “negative alpha” and unstructured decision-making
• How pattern recognition scales exponentially—but portfolio work does not
• Why exit planning should start on day one
• The hardest part of growth equity: managing the “walking dead”
• What motivates Brian most after more than a decade of investing

Guest Bio:

Brian Neider is a Managing Partner at Lead Edge Capital, where he helps oversee the firm’s investment strategy, portfolio management, and operations. He is a member of the firm’s Investment, Disposition, and Management Committees and has led or co-led investments in companies including Toast, Asana, Duo Security, Lucid, Amplitude, and Workhuman. Prior to joining Lead Edge in 2012, Brian invested at Bessemer Venture Partners and FTV Capital, focusing on mid-market growth opportunities across software, internet, and business services. He holds a B.S. in Economics from the Wharton School and an MBA from Columbia Business School and is based in New York.

Our Podcast now receives more than 300,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at david@weisburdcapital.com.

#VentureCapital #VC #Startups #OpenLP #assetmanagement

Stay Connected with David Weisburd:

X/Twitter: @dweisburd LinkedIn: https://www.linkedin.com/in/dweisburd/ Weisburd Capital: https://www.weisburdcapital.com/

Stay Connected with Brian Neider:

LinkedIn: https://www.linkedin.com/in/brian-neider-7774041/ Questions or topics you want us to discuss on How I Invest? Email us at david@weisburdcapital.com.

Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Introduction (1:20) The first fund, early advice, and challenges with institutional investors (5:33) Building and managing relationships with investors (12:06) The role of LP dinners, NextGen events, and full-time engagement teams (17:01) Key metrics and strategies for investment selection (21:32) Competitive market strategies and the value of LP introductions (25:35) Utilizing introductions, advice, and understanding growth factors (32:40) Addressing challenges with portfolio companies and LP feedback (38:14) People-centric opportunity filtering and advice for early-stage LeadEdge (42:37) Comprehensive framework and strategies around exits (45:16) Closing remarks