Superclusters - The Emerging LP Podcast

Nakul Mandan, founder of Audacious Ventures, and Ben Choi, an investment manager with over $3B in assets, share their insights on venture capital and entrepreneurship. They explore the contrasts in entrepreneurial motivations, likening struggles to Batman's journey from glamor to growth. Personal stories highlight resilience, community support during crises like COVID-19, and the importance of empathy in decision-making. The conversation wraps up with reflections on holiday spirit and gratitude towards the entrepreneurial community.

Ashby Monk, a Senior Research Engineer at Stanford and expert in institutional investing, shares invaluable insights on the intersection of courage and crisis in pension funds. He humorously recounts his LinkedIn adventures, revealing the lighthearted side of professional networking. The conversation dives into the complexities of compensation structures in institutional investing, emphasizing the need for transparency and trust. Monk advocates for neurodiversity and collaboration in finance, highlighting the transformative potential of innovation and educational initiatives.

David York, Founder and Managing Director of Top Tier Capital Partners, shares his extensive venture capital insights. He discusses the evolving LP model and stresses the importance of long-term relationships in fundraising. York also reflects on his impressive career on Wall Street and how adaptability is key in today’s investment landscape. From historical challenges to innovative structures, he delves into the complexities shaping the venture capital market while highlighting the need for effective communication with investors.

Dan Stolar, Principal at Colibri Equity Ventures, shares his insights on the venture capital landscape, specifically the fine balance between raising capital and managerial capability. He emphasizes the importance of genuine networking in fostering successful partnerships between General Partners and Limited Partners. The discussion also touches on the dynamics of career movement within VC, the role of interpersonal relationships in due diligence, and the innovative strategies that enhance communication and productivity. Plus, he sprinkles in some engaging personal anecdotes and culinary recommendations!

“The line that sits for me is you got to pick well, you got to coach well, and then you got to finance well – and the financing includes the exit.” – Jeff Rinvelt Jeff Rinvelt is a partner at Renaissance Venture Capital an innovative venture capital fund of funds. Jeff’s diverse background in venture capital and technology and his experience working in various start-up ventures uniquely position him to advise startups. In addition, Jeff is quite active in the Michigan start-up community, volunteering his time to mentor young entrepreneurs, judge pitch competitions, and guest lecture student classes and organizations. Through Jeff’s work on the Fund, his volunteer efforts, and his role as the chair of the Michigan Venture Capital Association’s board of directors, his passion for fostering a productive environment for venture capital investment in the State of Michigan is evident. You can find Jeff on his socials here: Twitter: https://twitter.com/rinvelt LinkedIn: https://www.linkedin.com/in/rinvelt/ And huge thanks to this episode's sponsor, Alchemist Accelerator: https://alchemistaccelerator.com/superclusters OUTLINE: [00:00] Intro [02:28] When Jeff went from engineering to finance [06:26] An introvert in an extroverted industry [07:42] Jeff's transition from founder to investor [11:06] The need for a fund of funds in Michigan [13:54] Why start a fund of funds instead of joining another fund [15:32] The minimum viable fund size for a fund of funds [21:46] Renaissance's portfolio construction [24:15] Why Renaissance measures GP performance by net IRR [28:18] How does Jeff assess a GP's portfolio construction model? [31:20] Jeff's stance on reserves [34:39] Who is the exit manager? [37:22] Should VCs be public market investors? [42:43] What would Jeff do if he had evergreen capital? [44:01] Do the best GPs in Jeff's portfolio send the deck first or have the meeting first? [45:11] Why is Jeff trying to break your heart? [48:32] Thank you to Alchemist Accelerator for sponsoring! [49:33] If you enjoyed the episode, please do share this episode with ONE other person you think would enjoy it. 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

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.