E35: Ben Gallacher of Cannonball on "Value per Dollar Invested" and How it Predicts Fund Performance

Ben Gallacher sits down with David Weisburd to discuss venture capital, his journey as an LP, and the challenges emerging managers face. They discuss check sizes, diligence processes, and the impact of a GP leaving during an investment life cycle. They also cover the role of CFO/COO in GP operations and the importance of supporting emerging managers.

The 10X Capital Podcast is part of the Turpentine podcast network. Learn more: turpentine.co

(0:00) Introduction and guest welcome (1:06) Ben Gallacher's journey to becoming an LP (2:19) Evolving investment strategy and differences between private equity and venture capital (5:54) Compensation and incentives in private equity vs. venture capital (8:17) Time management and LP expectations for emerging managers (11:32) Key factors and due diligence process LPs consider in emerging managers (14:40) Sponsor: Bidav Insurance Group (17:03) Utilizing other LPs for due diligence and building relationships (20:17) Collaborative check writers and emerging manager strategy (22:12) Portfolio allocation: Concentration versus diversification (25:57) Follow-on investment strategies and signaling risk (30:15) Percentage of portfolio for follow-on investments and balancing alpha and smooth returns (35:44) Building a business versus building a fund and impact of a GP leaving (39:35) Importance of being close to the ground and values driving alpha (40:31) Closing remarks and contact information (41:53) Newsletter announcement powered by Carrier Labs