Venture Unlocked: The playbook for venture capital managers

Investing in USV Fund I, lessons learned as a LP, and why Emerging Managers are so important

Aug 1, 2024

Lindel Eakman, a seasoned investor at Foundry with a rich history at UTIMCO, shares insightful lessons from his journey in venture capital. He discusses the significance of being an early investor in Union Square Ventures and his preference for collaboration with smaller partnerships. Lindel emphasizes the importance of quality reference calls in assessing General Partners and highlights the critical role of emerging managers in the evolving landscape of venture investing. His people-centric approach underscores the value of relationships in navigating the investment process.

01:03:20

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Lindel Eakman

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Quick takeaways

The speaker emphasizes the importance of personal relationships and qualitative assessments in venture capital to identify valuable entrepreneurs and partners.

Emerging managers are vital during economic uncertainty, as they provide opportunities for LPs to invest in smaller, nimble funds with high potential returns.

Deep dives

Early Investment Experience and Focus

The speaker shares insights from their early investment career, starting as an intern at U-TIMCO in 2002, where they focused on venture capital despite the endowment's limited experience in that area. The opportunity to invest in Union Square Ventures in 2004 became a significant milestone, demonstrating the potential of emerging managers despite the skepticism surrounding venture capital at the time. The speaker's innate interest in technology and a youthful, adaptable investment team contributed to the endowment’s initial ventures into this challenging space. They attribute their early success to a combination of market knowledge, timing, and a willingness to take calculated risks.

Ensuring functionality in partnerships

00:52

Spin outs over next two years

01:30

Recommendations of portfolio of funds

02:34

Choosing Alignment Over Luck

01:20

Intro

2min

Navigating the Journey in Venture Capital

4min

The People-Centric Approach to Venture Investment

5min

Navigating Venture Capital: Challenges and Opportunities

24min

Building Trust in Venture Capital Partnerships

10min

Strategic Portfolio Building in Venture Capital

7min

Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.

This week I'm excited to sit down with Lindel Eakman from Foundry. Lindel has been an investor in funds and companies since the early 2000s when he started at UTIMCO.

In our conversation, Lindel talks about being one of the first investors in Union Square Ventures, his preference for smaller partnerships, and the art of conducting quality reference calls on GPs. Having known each other for a while, our chat felt like a fun and casual water cooler conversation about the venture capital world.

About Lindel Eakman:Lindel Eakman is a partner at Foundry, where he focuses on early-stage investing. Since joining in 2015, Lindel has been active across the portfolio, working closely with partner funds and leading new direct investments. He is known for his humble and supportive approach, valuing the hard work of founders.

Before Foundry, Lindel managed the private investment program at the University of Texas Investment Management Company (UTIMCO) from 2002 to 2015. At UTIMCO, he built the venture capital program and invested in firms like IA Ventures, True Ventures, Union Square Ventures, and Foundry.

Lindel began his career in finance at KPMG in the M&A Tax Practice from 1997 to 2001 and then worked as a Corporate Finance Associate at Stephens, Inc. in 2002. He holds an MBA from the University of Texas at Austin McCombs School of Business and a BBA in Accounting and Finance from Texas Christian University. He is a CPA and a CFA charter holder.

In this episode, we discuss:

(01:14) Early Career and Union Square Ventures and moving to Foundry

(03:00) Investment Philosophy and Strategy

(04:28) The value of partnering with emerging managers

(05:55) Selecting GPs and Making Investment Decisions

(10:30) The Current Venture Market Landscape in 2024.

(13:00) Challenges and Opportunities for New Managers

(17:00) Future of Venture Capital

(21:00) Importance of People in Venture

(25:00) Secondaries and Liquidity Opportunities

(29:00) The importance of evaluating partnership dynamics in emerging managers

(33:00) Best practices for conducting reference checks.

(37:00) How virtual interactions affect partnership assessments and fundraising

(42:00) Advice for new managers on constructing a venture portfolio, focusing on sectors and small funds

(47:00) Role of Large Funds in a Venture Portfolio

I’d love to know what you took away from this conversation with Lindel. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop me a direct message on Twitter.

Podcast Production support provided by Agent Bee

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com

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