How I Invest with David Weisburd E99: How to Pick Top Decile Venture GP’s
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Oct 1, 2024 
Albert Azout, Managing Partner at Level Ventures, teams up with David Weisburd, a seasoned venture capital professional, to uncover the secrets of identifying top-tier fund managers. They discuss the importance of data in analyzing fund performance and spotting promising founders early. The conversation also touches on the flywheel effect in investment networks, strategies for successful portfolio construction, and the nuanced balance between quantitative and qualitative insights in venture capital. It's a masterclass in leveraging social capital for optimal investment opportunities.
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Network Centrality Predicts GP Performance
- LevelVC uses large, heterogeneous datasets to reconstruct venture networks and identify manager centrality as a predictor of future performance.
- They believe network position and dynamic social capital are key signals for predicting top-decile GPs.
Judge GPs By Their First Deals
- Track a new manager's first investments to quickly gauge their network access and future positioning.
- Use those early signals to predict whether they will compound access and outperform later.
Adjust Reserves To Market Timing
- Set follow-on reserve strategy based on market timing and financing cadence rather than fixed rules.
- In slow markets, allocate more reserves because companies need extra time to reach milestones.