Superclusters - The Emerging LP Podcast

Kelli Fontaine, a partner at Cendana Capital and former figure skater, discusses her expertise in venture capital focusing on pre-seed and seed funds. She emphasizes the critical role of data in investment decisions and shares insights on measuring unique datapoints that many LPs overlook. Kelli explains why neutral references can be more detrimental than negative ones and stresses the importance of thorough reference checks. The conversation highlights how understanding biases and the personal dynamics between fund managers and founders can elevate investment success.

In this enlightening discussion, guests Lisa Cawley, Managing Director of Screendoor; Ben Choi, who oversees over $3B in investments; and Jaclyn Freeman Hester, Partner at Foundry, delve into the intricacies of venture capital firm-building and succession planning. They emphasize the vital role of empathy and mentorship in nurturing future leaders. The conversation also touches on the evolving responsibilities of Limited Partners in professional development and the complexities of managing leadership transitions, underscoring the importance of transparency and communication.

“We overcomplicate almost nothing as LPs. And this is a criticism of myself. And I think we oversimplify almost everything. Because by definition, we’re the customer of the end product. [...] LPs watch the movie, but don’t read the book.” – Ben Choi We're doing a three-part series with some of our fan favorites over the last three seasons on the LP perspective of succession-planning and VC firm-building. Lisa Cawley is the Managing Director of Screendoor, a highly respected LP of GPs, investing in firm-builders by firm-builders, with a unique model for partnering with allocators to access the emerging manager ecosystem. Ben Choi manages over $3B investments with many of the world’s premier venture capital firms as well as directly in early stage startups. He brings to Next Legacy a distinguished track record spanning over two decades founding and investing in early-stage technology businesses. Jaclyn Freeman Hester is a Partner at Foundry. Jaclyn helped launch Foundry’s partner fund strategy, building the portfolio to nearly 50 managers. Bringing her unique GP + LP perspective, Jaclyn has become a go-to sounding board for emerging VCs. You can find Lisa on her socials here: LinkedIn: https://www.linkedin.com/in/31mml/ Screendoor: https://www.screendoor.co/contact You can find Ben on his socials here: Twitter: https://twitter.com/benjichoi LinkedIn: https://www.linkedin.com/in/bchoi/ You can find Jaclyn on her socials here: Twitter: https://twitter.com/jfreester LinkedIn: https://www.linkedin.com/in/jaclyn-freeman-hester-70621126/ And huge thanks to this episode's sponsor, Alchemist Accelerator: https://alchemistaccelerator.com/superclusters OUTLINE: [00:00] Intro [02:00] Questions Ben asks GPs to see if they're thinking long-term [06:50] Questions Jaclyn asks GPs to assess long-term thinking [09:45] What does leverage look like for a GP? [20:13] The role of AI internally at a firm [21:06] Advice to people looking to take junior VC roles [25:33] Questions Lisa asks GPs to assess long-term thinking [29:19] When does a fund turn into a firm? [31:26] Lisa: What do LPs often oversimplify vs overcomplicate about firm-building? [35:31] Ben's answer to oversimplification vs overcomplication [41:00] What do emerging and established GPs oversimplify and overcomplicate? [45:06] Thank you to Alchemist Accelerator for sponsoring! [46:07] If you can't wait for Part 3 of this conversation, leave us a like or comment! Follow David Zhou for more Superclusters content: For podcast show notes: https://cupofzhou.com/superclusters Follow David Zhou's blog: https://cupofzhou.com Follow Superclusters on Twitter: https://twitter.com/SuperclustersLP Follow Superclusters on TikTok: https://www.tiktok.com/@super.clusters Follow Superclusters on Instagram: https://instagram.com/super.clusters

In a compelling discussion, Lisa Cawley, a managing director at Screendoor, highlights the importance of defining a long-term vision for venture firms to ensure success and growth. Ben Choi emphasizes the role of culture keepers in maintaining organizational values during leadership changes. Jaclyn Freeman Hester shares insights on the psychological aspects of partnerships and the need for nurturing deeper team dynamics. Together, they explore the balance between financial performance and the intangible factors that contribute to sustainable success in venture capital.

Rick Zullo, Co-Founder and Managing Partner at Equal Ventures, delves into his journey in venture capital, highlighting key lessons on effective communication and the importance of sharing perspectives. He emphasizes building trust in emerging manager communities and the need for vulnerability and open dialogue. Zullo also discusses his personal challenges and perseverance in the VC landscape, as well as innovative strategies like reverse pitches. Insights on board dynamics and supporting founders round out a captivating discussion on nurturing a collaborative investment ecosystem.

Felipe Valencia is one of the co-founders of Veronorte, a venture capital investment firm based out of Colombia. In the first decade, Veronorte focused on managing Corporate Venture Programs for some of the largest Corporations in Latam. These days, they’re diving into a Fund of Funds investment strategy in the Venture Capital space. For the last 12 years, Veronorte has invested in over 25 startups across the U.S., India, Europe, Mexico, and Colombia, and in more than 12 Venture Capital funds, primarily in the U.S. With over 20 years of experience under his belt, Felipe has dabbled in various fields like robotics, the internet, international trade, and infrastructure project management. Felipe graduated summa cum laude with a Mechanical Engineering degree from EAFIT University. He also holds a Master’s in Web Communication from the European Institute of Design in Rome and an MBA from the University of Chicago, where he focused on entrepreneurship and finance. Felipe’s journey has taken him all over the world: He worked for AVG – Robotics in Los Angeles, did research and development in Mechatronics at Siemens in Germany, and was the Commercial and Strategic Director of Indexcol in Colombia. He also served as the Commercial Attaché at the Colombian Embassy in China and led the Proexport office there. Most recently, he was involved in business development at Pierson Capital in Beijing and managed infrastructure projects in Mexico. You can find Felipe on his socials here: LinkedIn: https://www.linkedin.com/in/felipevalencia/ Veronorte: https://veronorte.com/ And huge thanks to this episode's sponsor, Alchemist Accelerator: https://alchemistaccelerator.com/superclusters OUTLINE: [00:00] Intro [02:54] Felipe's teenage years under a life of terror [10:01] How Medellin has changed over the years [13:12] Tales from Felipe's travels across 10 cities in 4 continents [17:53] How did Felipe made his foray into VC? [22:46] How did Felipe meet his co-founding partner Camilo? [26:31] How Felipe pitched a VC fund without a track record [39:16] How did Felipe and Camilo think about compensation in Fund I? [47:40] How did Veronorte transition from a VC fund to a fund of funds? [55:14] The Monte Carlo simulation of fund of funds strategies [1:03:04] How much better does a venture fund need to do than public markets? [1:05:46] How did Veronorte get into top tier established funds? [1:12:00] What coffee brand did Felipe bring on his visits to the US? [1:13:38] How did Veronorte close Latam family offices in their fund of funds? [1:17:04] How does Veronorte communicate with their LPs? [1:23:58] The difference between an emerging firm and a frontier firm [1:28:55] Portfolio construction at Veronorte [1:34:50] What podcasts does Felipe listen to? [1:38:19] Felipe's advice for the wanderlust [1:43:39] Thank you to Alchemist Accelerator for sponsoring! [1:44:39] If you enjoyed this episode, albeit longer, please do leave a like and share it with one friend who'd enjoy this episode! Follow David Zhou for more Superclusters content: For podcast show notes: https://cupofzhou.com/superclusters Follow David Zhou's blog: https://cupofzhou.com Follow Superclusters on Twitter: https://twitter.com/SuperclustersLP

“If you want to build trust with someone [on your team], if they screw up, you have to be okay with them screwing up because you put them in the situation.” – Ben Ehrlich Ben Ehrlich is the founder and General Partner of First Momentum Capital, where he helps seed a new generation of venture capital firms. He is also the Director of Strategy at the Long Term Stock Exhange. Previously Ben worked across the venture ecosystem supporting companies in the Canadian Technology Accelerator, OutCast Communications and Cribspot (YC 15). In his free time Ben takes his Irish setter doodle hiking and enjoys watching the University of Michigan football team (mostly) win. You can find Ben on his socials here: Twitter: https://x.com/benjaminehrlich LinkedIn: https://www.linkedin.com/in/benjamin-ehrlich-43b75498/ And huge thanks to this episode's sponsor, Alchemist Accelerator: https://alchemistaccelerator.com/superclusters OUTLINE: [00:00] Intro [03:43] The origins of the Out of the Crisis podcast [06:54] Ben's advice for rookie podcasters [08:35] How did Ben first meet Eric Ries? [11:46] The play-by-play for Ben's interview with LTSE [13:36] What do decisions and conversations look like at LTSE? [16:23] Building trust among team members [18:29] How does Ben build trust with GPs? [25:14] How did First Momentum Capital start? [30:42] What was the pitch to close First Momentum's first fund? [33:54] How does Ben underwrite Fund I managers? [36:42] How does Ben measure a GP's future deal flow (as opposed to today's)? [45:40] What does a "No" from Ben look like? [57:50] Thoughts on fund governance [1:05:57] What is the role of serendipity in Ben's life? [1:08:17] Commisso Bakery in Toronto [1:10:35] Thank you to Alchemist Accelerator for sponsoring! [1:11:35] If you enjoyed the episode, I'd appreciate it if you could share it with one friend! Follow David Zhou for more Superclusters content: For podcast show notes: https://cupofzhou.com/superclusters Follow David Zhou's blog: https://cupofzhou.com Follow Superclusters on Twitter: https://twitter.com/SuperclustersLP Follow Superclusters on TikTok: https://www.tiktok.com/@super.clusters Follow Superclusters on Instagram: https://instagram.com/super.clusters

Susan Kimberlin builds and invests in things that are Good & Useful. She is an angel investor, limited partner and product leader with a career that is equal parts building SaaS software products, and investing in companies, funds, teams, and projects that promote social equity with practical solutions for real-world problems. She is committed to bringing more diverse people into investing and the innovation economy. With a background in building search and natural language products for companies like PayPal and Salesforce, she leverages her experience to help her portfolio companies with product and fundraising strategies. Susan believes that bringing diverse perspectives to creative and practical challenges is the best way to create durable and impactful change. In addition to her tech roles, Susan co-owns and manages Tammberlin Vineyards, growing Rhône wine varietals in Bennett Valley, Sonoma County. She works on documentary and narrative film projects as an executive producer, supporting creative projects that raise awareness, start conversations, and bring joy. She is a lifelong singer, and has been singing with pop a cappella group The Loose Interpretations for nearly 20 years. You can find Susan on her socials here: Twitter: https://x.com/susansearchpro LinkedIn: https://www.linkedin.com/in/susankimberlin/ Substack: https://goodanduseful.substack.com/ And huge thanks to this episode's sponsor, Alchemist Accelerator: https://alchemistaccelerator.com/superclusters OUTLINE: [00:00] Intro [02:51] What are madrigals? [10:10] How to balance high expectations for your team and the trust that they will get there [14:53] How does Susan recognize drive and excellence in others? [21:49] What made Susan's founding LP check in Backstage Capital so unique? [26:01] Difference between LP stakes and GP stakes [38:51] The smokes and mirrors behind the first pitch [43:54] Susan's investment strategy as an individual LP? [50:21] What topic would Susan give a TED talk in that's not startups or venture? [59:24] Thank you to Alchemist Accelerator for sponsoring! [1:00:25] If you enjoyed this episode, could you share this with one other friend? Follow David Zhou for more Superclusters content: For podcast show notes: https://cupofzhou.com/superclusters Follow David Zhou's blog: https://cupofzhou.com Follow Superclusters on Twitter: https://twitter.com/SuperclustersLP Follow Superclusters on TikTok: https://www.tiktok.com/@super.clusters Follow Superclusters on Instagram: https://instagram.com/super.clusters

Raida Daouk, a Venture Partner at BY Venture Partner and founder of Amkan Advisory, shares her expertise in personalized venture consulting. She discusses the nuances of reference checks and their importance for emerging limited partners in venture capital. Raida also dives into the psychology of leadership, the significance of personal networks, and how family offices can navigate the venture landscape. Her firm focuses on connecting investors with talented first-time fund managers to optimize returns while reducing perceived risks.

“If you are governing things from a point of a legal document, whatever that may be and having to refer to that in order to trigger a behavior, that often to me feels emblematic of a transaction, not a relationship.” Lisa Cawley is the Managing Director of Screendoor, a highly respected LP of GPs, investing in firm-builders by firm-builders, with a unique model for partnering with allocators to access the emerging manager ecosystem. She’s been covering venture capital for more than a dozen years, since 2010 at Ernst and Young, a private investment firm, and now to Screendoor. Lisa is a proud graduate of Loyola University Maryland where she's earned her MBA and MS in Finance, as well as her BBA in Accounting, with a double minor in Information Systems and Spanish. Lisa is a CFA Charterholder and holds a CPA from the State of Maryland. In addition, she's also a member of Class 29 of the Kauffman Fellows. You can find Lisa on her socials here: LinkedIn: https://www.linkedin.com/in/31mml/ Screendoor: https://www.screendoor.co/contact And huge thanks to this episode's sponsor, Alchemist Accelerator: https://alchemistaccelerator.com/superclusters OUTLINE: [00:00] Intro [03:43] How swimming has influenced Lisa's life to date [11:16] How does Lisa evaluate competitive spirit in others? [14:36] The importance of understanding LP side letter terms [21:33] Investing as a team AND individual sport [23:45] Screendoor as the LP of GPs [28:43] How does Screendoor align incentives with their GP advisors? [31:05] How do GP advisors get assigned to portfolio managers? [35:09] LP-GP fit [37:46] Generation 1 vs Generation 5 of a family office [43:19] How does firm-building differ from fund-building? [49:09] Reference checking a fund manager's "unique" value-add [55:24] Which two life lessons would Lisa canonize in a time capsule? [57:36] What was in Lisa's last OS update? [1:01:23] The different facets of education in Lisa's life [1:09:09] Final words on being thoughtful as an LP [1:14:05] Post-credit scene [1:25:27] Thank you to Alchemist Accelerator for sponsoring! [1:26:29] If you enjoyed the episode, I'd great appreciate it if you shared it with 1 other person! Follow David Zhou for more Superclusters content: For podcast show notes: https://cupofzhou.com/superclusters Follow David Zhou's blog: https://cupofzhou.com Follow Superclusters on Twitter: https://twitter.com/SuperclustersLP Follow Superclusters on TikTok: https://www.tiktok.com/@super.clusters Follow Superclusters on Instagram: https://instagram.com/super.clusters