E68: The Smithsonian Institution’s Venture Capital Edge

Jeff Smith, Managing Director of Private Investments at the Smithsonian’s endowment, sits down with David Weisburd to discuss the Smithsonian endowment’s advantage in accessing the best managers in venture capital. They also discuss the importance of continually allocating throughout cycles, knowing when to exit, and communicating effectively with LPs. They conclude by covering what Jeff looks for when evaluating new venture managers. (0:00) Introduction to venture capital strategies and market dynamics (1:54) Capital allocation and its long-term importance (3:30) Exit strategies and liquidity in venture investments (4:31) Building and managing a private investment team (5:42) Balancing investments in real estate and venture capital (7:57) Developing and maintaining GP/LP relationships (11:27) Selecting and investing in unique fund managers (16:23) Cost implications for large versus small funds (17:38) The Smithsonian Institution's approach to venture investing (19:15) The role of sector diversification in venture portfolios (20:58) Evaluating emerging fund managers and fund one performance (21:33) The Smithsonian's mission, team, and venture network strategies (22:51) Analyzing the influence of standout investments (23:10) Conclusion and outlook for future episodes