Beezer Clarkson on How to Get a “Yes” from Investors, Advice to Young VCs, Fund Mission vs. Returns, and What Diversity Means in Venture
Jun 3, 2024
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Beezer Clarkson, Partner at Sapphire Partners, discusses groupthink in venture, momentum investing, securing investor buy-in, fund sizes, VC personality traits, and the importance of early wins. She emphasizes differentiation for LPs, diversity in investments, challenges faced by women in venture, and the contrasting investment sentiments in Israel vs. China.
Having curiosity and ambition is crucial in venture capital.
New fundraising avenues like rolling funds and social media platforms are emerging.
Balancing optimism and skepticism is key for successful investments.
Sapphire Partners focuses on being an authentic and value-driven LP in venture capital.
Deep dives
Building a Strong Foundation at Sapphire Partners
Beezer, representing Sapphire Partners, discusses the dual role of curiosity and ambition in the venture capital world. She emphasizes the importance of having a passion for the work and a keen sense of curiosity to navigate the intricate landscape. Through a blend of learning the craft and leveraging personal traits, Beezer highlights the significance of understanding the entrepreneurial journey and staying energized in the long game of venture capital.
Navigating the Changing Dynamics in Emerging Managers Fundraising
Reflecting on the challenges facing first-time fund managers, the podcast delves into the evolving nature of fundraising in the venture capital sphere. Despite current market conditions presenting hurdles, Beezer points out the availability of new fundraising avenues such as rolling funds and social media platforms, enabling aspiring managers to carve out their niche. She acknowledges the changing landscape amidst a generational shift in VC and shares insights on seizing opportunities for differentiation amid market uncertainty.
Balancing Optimism with Realism in VC Investing
In a discussion about the traits essential for VC success, Beezer navigates the fine line between optimism and skepticism in the investment world. While optimism fuels the ability to envision growth and potential, a dose of skepticism and a realistic understanding of challenges equip investors with a balanced approach. By acknowledging both the potential and risks inherent in investments, venture capitalists can better assess opportunities and manage expectations.
Positioning as a Value-Driven LP in the Venture Capital Arena
Beezer articulates the strategic positioning of Sapphire Partners as an LP focused on the venture capital domain. By fostering a deep-rooted love for venture, Sapphire aims to serve as a reliable partner for entrepreneurs and GPs alike. Through a blend of sector expertise, complementary team dynamics, and a proactive engagement approach, Sapphire underscores a commitment to authenticity and value creation within the VC ecosystem.
Defining Differentiation and Engagement in LP Selection
Examining the criteria for selecting LPs, the podcast explores the essence of differentiation and engagement in the decision-making process. Beezer highlights the significance of aligning values, expertise, and communication strategies to forge lasting partnerships. By offering a nuanced blend of sector insights, team dynamics, and interactive engagement, LPs like Sapphire Partners seek to stand out amidst a competitive landscape, emphasizing mutual growth and shared success.
Building Strong Relationships with LPs
Building lasting relationships with LPs is crucial in the venture capital business. Establishing trust and understanding their ability to weather market fluctuations are key factors considered. Long-term partnerships with dependable LPs who can provide stability during the highs and lows of the industry are prioritized.
The Impact of AI in Venture Capital
AI has become a pivotal aspect of disrupting industries and transforming business models. Although skepticism exists about AI being overhyped, investors like Sapphire Ventures believe in its transformative power. The application of AI, especially in existing companies, drives innovation and reshapes traditional industry landscapes. AI is seen as an essential tool that can revolutionize various sectors and drive company success.
On this episode of Invested, Michael hosts Beezer Clarkson, a partner at Sapphire Partners.
Beezer leads Sapphire Partners‘ investments in venture funds domestically and internationally.
Beezer began her career in financial services over 20 years ago at Morgan Stanley in its global infrastructure group. Since, she has held various direct and indirect venture investment roles, as well as operational roles in software business development at Hewlett Packard. Prior to joining Sapphire in 2012, Beezer managed the day-to-day operations of the Draper Fisher Jurvetson Global Network, which then had $7 billion under management across 16 venture funds worldwide.
In 2016, Beezer led the launch of OpenLP, an effort to help foster greater understanding in the entrepreneur-to-LP tech ecosystem.
Beezer earned a bachelor’s in government from Wesleyan University, where she served on the board of trustees and currently serves as an advisor to the Wesleyan Endowment Investment Committee. She is currently serving on the board of the NVCA and holds an MBA from Harvard Business School.
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KEY TOPICS
[00:00:00] Intro
[00:01:42] Starting OpenLP
[00:03:45] Groupthink in Venture
[00:07:06] Momentum Investing
[00:10:13] Choosing the Right Investments
[00:14:40] How to Get a “Yes” from an Investor
[00:21:00] Large Funds or Small Funds
[00:30:00] How Important are Early Wins
[00:35:20] Is There a VC Personality Type?
[00:37:36] Advice to Young VCs
[00:43:00] Is Now the Worst Time to Invest?
[00:54:48] Mission or Returns
[00:59:00] Importance of Diversity
[01:01:00] Ageism in VC
[01:08:00] How Investments Changed Since October 7th