E293: Inside GEM: How a $12.5 Billion Platform Selects Outlier Funds

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Jan 29, 2026

Kate Simpson, senior venture allocator at GEM with prior LP experience at UNC and fund-of-funds, talks manager selection and portfolio construction. She discusses how reference checks, fund sizing, and reserve strategies reveal who can capture power-law winners. Conversation covers market bifurcation between access and discovery, sourcing advantages, and early signals of strong managers.

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ADVICE

Ask Why Founders Choose A VC

Ask differentiating questions to understand why founders choose a particular VC over many alternatives.
Focus your diligence on what unique value the manager brings to founders, not just general claims.

ADVICE

Do Off-List, Pattern-Based Reference Checks

Do deep reference checks and seek off-list contacts to get candid feedback on a GP.
Ask targeted questions that reveal patterns, not just surface praise.

INSIGHT

Model The Path To 5X Returns

Build a 'what you need to believe' model to test fund-size versus ownership and reserve strategy.
Use realistic paths to 5X to avoid relying on heroic assumptions when comparing funds.

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How do experienced LPs evaluate venture managers in an increasingly crowded and bifurcated market? David Weisburd speaks with Kate Simpson about her career as a venture allocator, her move to GEM to lead venture investing, and how institutional LPs assess sourcing, portfolio construction, and power-law dynamics. Kate explains how reference calls, fund sizing, access, and long-term relationships shape conviction in venture manager selection.

Highlights:

Kate’s path from the UNC Endowment to leading venture at GEM
Lessons learned from fund-of-funds investing and institutional due diligence
Why asking the right questions matters more than having the right answers
Differentiating between “good” and “glowing” references
Evaluating venture funds through sourcing, picking, and winning
The role of portfolio construction and reserve strategy in venture returns
Why venture has become two distinct games: access vs. discovery
How fund size impacts the ability to capture power-law outcomes
Signals LPs use to evaluate managers before liquidity
The evolving role of LPs as long-term partners in venture ecosystems

Guest Bio:

Kate Simpson is a senior venture allocator at GEM, where she leads venture investing across the firm’s OCIO and discretionary platforms. She has spent her career as an institutional LP, with prior experience at the UNC Endowment and multiple fund-of-funds, focusing on venture manager selection, portfolio construction, and long-term partnerships. Kate brings a deep understanding of both qualitative and quantitative diligence across early-stage and multi-stage venture strategies.

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Sponsor:

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LinkedIn:https://www.linkedin.com/in/kate-simpson-159796/

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Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Introduction (0:40) Kate's career and venture investing insights (3:49) Effective reference checks and venture investing strategies (9:50) Fund math and spotting industry shifts (13:25) Evaluating venture funds and market bifurcation (17:24) Sourcing competitive advantages at Gem (20:41) LP vs. GP perspectives in venture capital (22:19) Identifying signs of successful investors (24:14) Challenges with DPI and LP value add (26:29) Building LP pipelines and JEM's approach to relationships (28:35) Active participation and current venture investing difficulties (30:56) Venture returns and the role of solo GPs (34:08) Managing key man risk and long-term GP partnerships (38:17) Career advice and advocating for oneself in investments (39:30) Closing remarks