Investing Beyond the Coastal Elites

This week on Swimming with Allocators, Earnest and Alexa welcome Brian Brackeen, Managing Partner at Lightship Capital. Brian shares his unconventional journey from tech founder to venture capital allocator. He discusses his vision for democratizing venture capital by investing in overlooked regions like the Midwest and challenging traditional investment biases, and emphasizes the importance of founder-focused investing, leveraging AI in fund management, and creating opportunities beyond coastal tech hubs. Key insights include his critique of performative DEI efforts, the potential transformative impact of AI across industries, and his belief that smaller funds in underserved regions can generate significant returns. Also, don’t miss our insider segment as Idan Netser from Sidley law firm discusses how legal firms can serve as valuable connectors and advisors in the venture capital ecosystem, helping GPs and LPs network, make introductions, facilitate deal opportunities, and provide strategic guidance beyond traditional legal services.

Highlights from this week’s conversation include:

• Brian's Journey into Tech and VC (0:40)
• Motivation for Starting Anchor Fund (6:27)
• Geographic and Diversity Challenges in VC (8:13)
• Investment Strategy and Diligence Process (9:38)
• Fund Size, Target LPs, and Support Services (11:50)
• Decision-Making and Fund Selection (13:17)
• Insider Segment: Benefits of Legal Firms for VCs (15:57)
• Trends in VC and LP/GP Terms (20:18)
• How LPs Should Approach Emerging Managers (23:51)
• Traits and Diligence for Fund Managers (25:56)
• AI in Fund Diligence and Operations (29:36)
• AI’s Future Economic Impact (32:52)
• Transferable Skills and Workforce Evolution (39:58)
• Anchor Fund’s Long-Term Vision (44:54)
• Final Thoughts and Takeaways (45:50)

Lightship Capital Anchor Fund is a fund-of-funds strategy dedicated to driving economic growth by investing in small businesses through venture funds and direct investments. With a focus on diversity and measurable outcomes, Anchor Fund supports fund managers across the Americas, Africa, and Europe, ensuring long-term financial success and community impact. Learn more at www.lightship.capital/anchorfund.

Sidley Austin LLP is a premier global law firm with a dedicated Venture Funds practice, advising top venture capital firms, institutional investors, and private equity sponsors on fund formation, investment structuring, and regulatory compliance. With deep expertise across private markets, Sidley provides strategic legal counsel to help funds scale effectively. Learn more at sidley.com.

Swimming with Allocators is a podcast that dives into the intriguing world of Venture Capital from an LP (Limited Partner) perspective. Hosts Alexa Binns and Earnest Sweat are seasoned professionals who have donned various hats in the VC ecosystem. Each episode, we explore where the future opportunities lie in the VC landscape with insights from top LPs on their investment strategies and industry experts shedding light on emerging trends and technologies. 

The information provided on this podcast does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this podcast are for general informational purposes only.