E28: Roland Reynold, Industry Ventures on Investing $7 Billion into Startups & Venture Funds

Roland Reynolds, Senior Managing Director at Industry Ventures, sits down with David Weisburd to discuss being one of the first investors in emerging managers and how he uses secondaries to drive alpha.

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(0:00) Introduction and Primary Commitments to Emerging Managers (1:32) Overview of Industry Ventures' Size, Structure, and Team (2:48) Investing in Early Stage Funds, Secondaries, and Tech Buyouts (5:03) Addressing Risk, Duration, and J Curve in Early Stage Venture (7:19) Building and Maintaining Relationships with Fund Managers (9:28) Sponsor: Bidav Insurance Group (10:10) Evaluating and Profiling Successful Fund Managers (16:17) Portfolio Construction and Managing Losses in Seed Stages (19:23) The Role of Early Secondaries and Direct Investments (21:42) Portfolio Strategies, Time Diversification, and Alpha Generation (25:26) History and DNA of Industry Ventures and Embracing Tweener Rounds (30:49) Partnering with Managers: SPVs and Investment Flexibility (35:25) Importance and Key Features of PPMs for Emerging Managers (39:37) In-depth Operational Due Diligence for Emerging Managers (43:02) Reflections, Acknowledgements, and Importance of Passion in VC (44:21) Encouragement for Engagement, Closing Remarks, and Listener Appreciation