The Overlooked Alpha in This Next Decade of Venture with Claude Grunitzky and Adrienne Rees of The Equity Alliance

Nov 29, 2023

Dive into the origins of a unique fund focused on uplifting underrepresented voices in venture capital. Discover the shift towards cash management and the impending opportunities amid market consolidation. The hosts discuss the importance of authenticity in fundraising and the hurdles diverse managers face. Learn how emerging managers can leverage their backgrounds to foster trust and promote success. Exciting insights on the future of venture capital reveal potential growth and diversification strategies that promise a more inclusive industry.

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Intro

00:00 • 2min

Founding the Equity Alliance

01:44 • 15min

The Future of Venture Capital

16:35 • 6min

Evolving Dynamics in Venture Capital

22:12 • 12min

The Power of Authenticity in Venture Capital Fundraising

33:43 • 2min

Highlights from this week’s conversation include:

The Equity Alliance Origin Story (2:22)
Starting with a Proof of Concept Fund (4:41)
Investment Strategy and Manager Selection (6:23)
Platform Management and Supporting Emerging Managers (11:29)
The Equity Alliance's Special Sauce (12:58)
Tracking Data for Success (14:51)
Insider Segment: The Future of Venture Capital (18:04)
The reversion to a focus on cash (22:07)
Consolidation in the market and potential opportunity (23:57)
The pressure on diverse managers and the increase in overall quality (27:03)
The challenge for institutional LPs in investing in diverse emerging managers (30:23)
The benefits of a fund of funds strategy for institutional LPs (31:32)
The importance of authenticity when talking to LPs (33:57)

The Equity Alliance was founded in 2021 and invests in exceptional venture capital fund managers and startup founders who are people of color and women. By investing in undercapitalized diverse fund managers and founders, we are unlocking access to superior returns that the rest of the venture market continues to overlook. Our strategy of investing in funds and identifying the standout portfolio companies within those funds offers a risk mitigated return.

Passthrough turns investor onboarding into a solved problem – it seamlessly manages subscription document distribution, execution, and compliance in minutes. As a leader in fund workflow automation for investors, fund managers, and other fintechs, Passthrough provides an integrated platform solution that makes the subscription document process turnkey for investors with replicable and verifiable identity information built in for future use. In addition to subscription documents, Passthrough also offers a full service KYC/AML product that streamlines collecting information from investors and screening them against sanctions lists so fund managers can remain compliant.

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. Follow along and subscribe at swimmingwithallocators.com.