Venture Unlocked: The playbook for venture capital managers

Follow me @samirkaji for my (usually) daily thoughts on the world of venture capital. We’re pleased to provide this week’s episode with Ben Casnocha, founding partner of Village Global.Prior to Village, Ben was an entrepreneur and also acted as Chief of Staff at LinkedIn and Greylock working directly with Reid Hoffman. Ben has also co-authored two New York Times bestselling management books, The Alliance: Managing Talent in the Networked Age (with LinkedIn chairman Reid Hoffman and entrepreneur Chris Yeh). and The Start-Up of You: Adapt to the Future, Invest in Yourself, and Transform Your Career (with Reid Hoffman). Village ventures has $250M AUM and was co-founded with Erik Torenberg, Founder and current chairman of On Deck, and Product Hunt’s first employee. Together, they’ve invested in over 200 companies, and use a very unique community driven approach to serve their founders. The firm is based in Silicon Valley and backed by some of the world’s most successful entrepreneurs in Mark Zuckerberg, Jeff Bezos, Bill Gates, Reid Hoffman, and Sara Blakely.We chat with Ben about the importance of curating networks, how they use an unique incentive model within the Village community, how they performed their portfolio construction model, and what venture trends are here to stay.A message from our sponsorStandish is the largest provider of fund administration services to Venture Capital funds globally. Currently, we serve approximately 750 Venture Capital funds and have more than $150 billion in committed capital under administration.  Standish has been designed by experienced Chief Financial Officers with a deep understanding of the service needs of both finance departments and General Partners at every stage of the product life cycle.  Standish can handle all of the needs of finance department so General Partners can focus on investing.Standish is an employee owned company.https://www.standishmanagement.com/In this episode we discuss:02:10    Why Ben doubled down on venture capital04:43    Ben’s learnings from working with Reid 08:08    How the fund leverages its relationships with luminary LPs11:27    Curating networks for scale14:30    Monetary and access incentives for collaborators in the VC community18:08    What characterizes a great founder/ learnings from luminaries21:55    The firm’s feedback framework25:08    How Ben and team constructed their portfolio29:49    Village’s acquisition and exit models32:39    How does Ben think about flexibility and rules when it comes to ownership34:50    Trends driving the current venture ecosystem 38:26    Relationship between institutions and seed funds40:45    Looking into the future: What does Fund 5 look like for Village42:22    What Ben has learned so far43:18    How his thinking has changed over his career45:44    Ben’s biggest inspirationsMentioned in this episode* Village Global VC* Ben’s blog* Ben’s booksDisclaimer: This presentation does not constitute an offer to sell or the solicitation of an offer to buy any security. No representation is being made that any investor or portfolio will, or is likely to, achieve profits or losses similar to those discussed. Targets discussed have been established based on several assumptions that may vary depending on the type of investment.  There is no guarantee that the conditions on which such assumptions are based will materialize as anticipated and will be applicable to Village Global’s portfolio investments.I’d love to know what you took away from this conversation with Ben. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop me a direct message on Twitter.Podcast Production support provided by Agent Bee Agency This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com

Today’s episode is with Lan Xuezhao, founding partner of Basis Set Ventures which has raised $301M across two funds. Lan has extensively studied AI, data science, and human psychology, and with Basis Set, she has combined those elements to bring a very unique approach to investing. Lan’s background in corporate development at Dropbox and management at McKinsey has contributed to her data driven approach to sourcing and investing. She has a PhD in Psychology from the University of Michigan. We chat about Lan’s unique investment philosophy, how she found GP/LP fit for Fund 1 and then Fund 2, how her firm has many shared characteristics of a portfolio company, and what makes for a founder super power. A message from our sponsorStandish is the largest provider of fund administration services to Venture Capital funds globally. Currently, we serve approximately 750 Venture Capital funds and have more than $150 billion in committed capital under administration.  Standish has been designed by experienced Chief Financial Officers with a deep understanding of the service needs of both finance departments and General Partners at every stage of the product life cycle.  Standish can handle all of the needs of finance department so General Partners can focus on investing.Standish is an employee owned company.https://www.standishmanagement.com/In this episode we discuss:02:18    Lan’s journey into venture capital 07:40   How did she go unconventional on fund size10:06    Lan’s learning about GP/LP fit13:57    Constructing a different LP base in Fund 2 vs. Fund 117:18    The structure of the fund’s tech and investment team21:01    Eliminating bias 22:56    Founder psychology + super power thesis26:00 Top two key traits of the best founders28:31    How Lan sees BSV’s place in the market today31:25    Future of firms in her size range34:14    Her Anti-Portfolio36:09    Inspirations from the investment worldMentioned in this Episode* Basis Set Ventures* Thesis on What Makes a Successful FounderI’d love to know what you took away from this conversation with Lan. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop me a direct message on Twitter.Podcast Production support provided by Agent Bee Agency This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com

Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape. In today’s show, we have the pleasure of speaking to Braughm Ricke, who has worked closely with emerging managers throughout his career, first serving as CFO of True Ventures, and then starting Aduro Advisors, which started in 2012 originally to focus on the new era of VC. He was also a early Advisor and Investor in Carta and has been an active investor. Thanks to working with over 350 venture fund clients, Braughm has unique insights on effective fundraising, what makes for a institutional back-office, and broad venture trends. In this episode we discuss:01:01    What Braughm saw in 2012 when he started Aduro Advisors to focus on Emerging VC’s 05:49    How the emerging manager space has grown and evolved06:42    What is different today from the early days08:49    The fundraising landscape for emerging managers11:49    Tactics for breaking into family offices13:51    What managers often need to do between rounds 16:19    The workload for solo GPs18:12    The support systems GPs need so they can spend more time on core activities22:56    Common traits amongst successful managers25:22    The most common mistakes he sees managers make26:45    What the future holds for venture29:55    The speed of new firm creationMentioned in this episode:* Aduro AdvisorsWe’d love to know what you took away from this conversation with Braughm! Follow @SamirKaji and give your insight and questions using the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop a direct message on Twitter.Podcast Production support provided by Agent Bee Agency This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com

Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape. We’re so pleased to bring you my discussion with Monique Woodard of Cake Ventures, a seed-stage firm investing in demographic change. To date, Monique has invested in startups such as Blavity, Court Buddy, Mented Cosmetics, and Silvernest. Cake Ventures invests in a thesis that is based on a “three-layer” philosophy that the future of technology is being driven by certain major shifts:* The aging Baby Boomer population* The shift of minorities driving culture* The increased spending power of women.Monique herself has a diverse background in government, venture capital and inclusive entrepreneurship. She was previously venture partner at 500 Startups, an investment scout for Lightspeed Ventures, and she is also the co-founder of Black Founders. We chat about a wide-range of topics, from her work in Sub-Saharan Africa, why she chose to start her own fund vs joining a large fund, raising capital, and the importance of building community in venture.A message from our sponsorStandish is the largest provider of fund administration services to Venture Capital funds globally. Currently, we serve approximately 750 Venture Capital funds and have more than $150 billion in committed capital under administration.  Standish has been designed by experienced Chief Financial Officers with a deep understanding of the service needs of both finance departments and General Partners at every stage of the product life cycle.  Standish can handle all of the needs of finance department so General Partners can focus on investing.Standish is an employee owned company.https://www.standishmanagement.com/In this episode we discuss:01:56    Monique’s journey into venture capital04:26    Why she joined 500 Startups06:51    Key insights on the globalization of startups from her time at 500 Startups08:57    Transitioning from 500 Startups to Cake Ventures11:10    The three layers of the Cake that form her thesis13:39    Early days of Cake Ventures17:30    Raising capital in a virtual environment20:32    Institutionalizing yourself and your portfolio22:52    Why Monique decided on being a solo GP28:46    When you should think about bringing on additional partners31:13    The future of diversity in the seed ecosystem35:08    Monique’s biggest learning as an investor37:00    Some missed opportunities38:23    Inspirations in the investment communityMentioned in this Episode* Cake Ventures* Gray New World - 2020 Report on Aging* 500 StartupsI’d love to know what you took away from this conversation with Monique. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop me a direct message on Twitter.Podcast Production support provided by Agent Bee Agency This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com

Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape. Our guest today is Shauntel Garvey, co-founder and general partner of education tech focused Reach Capital. She has a long history investing in ed-tech companies stemming back from her time at NewSchools Venture Fund. What I love about the Reach team is how thoughtfully they’ve constructed their firm and partnership which by far is one of the most diverse in all of venture. Currently Reach has $300 AUM and has invested in companies such as Mystery Science (acq by Discovery Education), Nearpod, Outschool, ClassDojo, and Epic.Shauntel did her undergrad at MIT, and got a MA in Education and MBA from Stanford.Listen to our conversation to learn more about how she’s seen the EdTech market evolve over the last few years and particularly since the pandemic, why they are active with portfolio companies after typical seed funds are, and how she thinks about investing thesis. A message from our sponsorFrank, Rimerman + Co.’s history is closely intertwined with that of Silicon Valley. With humble beginnings similar to so many start-ups, Frank, Rimerman was formed with a desire to serve the entrepreneurial and venture communities of the Valley and the determination to think outside-the-box.When it comes to venture funds, we work with almost 500 VC groups from over 20 states across the USA. We have worked with over 350 fund groups throughout their first year, making us one of the leading providers in the country to emerging managers.No one wants to be bored at work. That’s why we chose to work with some of the most innovative and creative people – people who are changing the world around us every day. Their excitement fuels our passion and determination to grow and serve this special community.Frank, Rimerman + Co, Passion Works Here.www.frankrimerman.comIn this episode we discuss:01:29 Shauntel’s journey into VC03:12 The decision to start Reach from NewSchools04:39 Why they decided to go with a larger partnership in Fund 107:14 The challenges of raising a sector specific fund for a sector not well understood at the time09:50 Pitching impact focused LPs vs return focused LPs11:51 How sector-specific managers answer the question about being too narrow16:18 Why despite being as seed fund, Reach stays with their companies throughout their lifecycle20:06 How they think about hiring at Reach21:51 How Reach looks at talent development as a part of its legacy23:41 Things firms can do early to build a generational legacy25:51 Developing and evolving an investment thesis28:24 Creating systems to allow for proactive outreach and investment30:03 Building strong a back office and operations32:50 Shauntel’s greatest learning as an investor33:55 What she’s learned from her misses36:42 The investor she aspires to be more likeMentioned in this episode:* Reach CapitalWe’d love to know what you took away from this conversation with Shauntel! Follow @SamirKaji and give your insight and questions using the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop a direct message on Twitter.Podcast Production support provided by Agent Bee Agency This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com

Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape. Today we’re excited to bring you my recent conversation with Mark Suster, managing partner at Upfront Ventures, a firm that was founded 25 years ago, originally as GRP partners. Mark joined the firm in 2007 and became managing partner in 2011 and helped architect the new era of the firm while also actively evangelizing the now robust LA tech ecosystem. Upfront currently has $1.9B AUM and has invested in companies such as Overture,  Maker Studios, and Ring.Prior to joining Upfront, Mark was a two-time operator, including selling the latter to Salesforce.com. He did his BA at UCSD, and got his MBA at the University of Chicago.This was a fun one and we talked a lot about how they’ve rebranded and evolved as a firm, how raising funds is no different than enterprise sales, and the interesting paradox that faces every VC today.A message from our sponsorFrank, Rimerman + Co.’s history is closely intertwined with that of Silicon Valley. With humble beginnings similar to so many start-ups, Frank, Rimerman was formed with a desire to serve the entrepreneurial and venture communities of the Valley and the determination to think outside-the-box.When it comes to venture funds, we work with almost 500 VC groups from over 20 states across the USA. We have worked with over 350 fund groups throughout their first year, making us one of the leading providers in the country to emerging managers.No one wants to be bored at work. That’s why we chose to work with some of the most innovative and creative people – people who are changing the world around us every day. Their excitement fuels our passion and determination to grow and serve this special community.Frank, Rimerman + Co, Passion Works Here.www.frankrimerman.comIn this episode we discuss:01:43    Mark’s journey into VC04:16    Why he thought GRP was a good fit for him08:22    How the firm transformed its investment focus12:55    The process around the rebranding to Upfront Ventures18:23    Human psychology of decisions23:41    Why you need to be careful on when to share data rooms27:41    How fundraising is like sales33:05 Why creating scarcity is important34:57    Talent retention and acquisition42:26    The current state of the venture market Mentioned in this episode:* The Righteous Mind: Why Good People Are Divided by Politics and Religion* Why You Should Never Have A Data RoomWe’d love to know what you took away from this conversation with Mark! Follow @SamirKaji and give your insight and questions using the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop a direct message on Twitter.Podcast Production support provided by Agent Bee Agency This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com

On this week’s show, we’re excited to bring you Satya Patel, co-founder of Homebrew, who he started with his partner Hunter Walk in 2013. Today, the firm is widely considered one of the top seed firms in the industry, counting companies such as Chime, Cruise, Eero, and Gusto as portfolio companies. Satya brings a unique product background to the table as he worked on AdSense in the early days at Google, and later in various product roles at Twitter. He also spent time as an investor at Battery Ventures. Satya and Hunter are incredibly thoughtful and detailed when they think about firm building, and during our conversation Satya and I discuss the hard conversations that potential partners need to have before starting a partnership, the unconventional way they raised their first fund, how Homebrew thinks about consistency with founder relationships, and fund sizing.A message from our sponsorFrank, Rimerman + Co.’s history is closely intertwined with that of Silicon Valley. With humble beginnings similar to so many start-ups, Frank, Rimerman was formed with a desire to serve the entrepreneurial and venture communities of the Valley and the determination to think outside-the-box.Frank Rimerman works with almost 500 VC groups from over 20 states across the USA with 350 fund groups during their first year of existence, making them one of the leading providers in the country to emerging managers.Frank, Rimerman + Co, Passion Works Here.www.frankrimerman.comIn this episode we discuss the following topics:01:13    How he and Hunter became friends and decided to work together again03:12    Personal factors in deciding to start his own firm when there were so many other options for them. 06:50    How he and Hunter sorted through their strengths and weaknesses 09:07    How were able to raise their first fund in 100 days by targeting institutional investors instead of relying on family offices like most Fund 1’s. 12:40    How they used scarcity and a hard close date to drive the process19:11    The thought process behind moving up weight classes in investing21:28    Different stages of investment require different skills 24:10    Number of investments vs. bigger ownership in a smaller portfolio26:38    Interview questions for new hires + how they compensate the team31:04 Homebrew to announce an effort to systematically further diversify VC34:45 The best lesson he’s learned37:08 Best advice for someone starting out in VC38:29 The investors that has been most helpful to his careerMentioned In This Episode:* Homebrew* All RaiseWe’d love to know what you took away from this conversation with Satya! Follow @SamirKaji and give your insight and questions using the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop a direct message on Twitter.Podcast Production support provided by Agent Bee Agency This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com

We’re thrilled to bring you my recent talk with Jeff Clavier of Uncork Capital, one of the early trailblazers of the emerging manager community. Jeff started investing in seed full time all the way back in 2004 well before the Micro-VC moniker was even conceived (back then we called them Super Angels). Today the firm is one of the most active seed funds in the market with over $500MM in AUM and having invested in companies such as Poshmark, Fitbit, Eventbrite, and Molekule.In this episode is a broad conversation covering the history of VC, raising in a downturn, his thoughts on the hardest things about building the firm, and trends that are influencing the future of venture.A message from our sponsorFrank, Rimerman + Co.’s history is closely intertwined with that of Silicon Valley. With humble beginnings similar to so many start-ups, Frank, Rimerman was formed with a desire to serve the entrepreneurial and venture communities of the Valley and the determination to think outside-the-box.Frank Rimerman works with almost 500 VC groups from over 20 states across the USA with 350 fund groups during their first year of existence, making them one of the leading providers in the country to emerging managers.Frank, Rimerman + Co, Passion Works Here.www.frankrimerman.comIn this episode we discuss the following topics:01:54    Jeff’s start as an investor with $250k of his own capital, and his first investment03:01    The decision to start a fund with third party capital06:10    Fundraising in the global financial crisis of 200809:01    The strategy shift in fund III and the questions it raised from LPs12:10    Why Uncork has kept funds smaller thus far16:45    Thoughts on the service provider model VC’s need to embrace19:16    Building a multi-generational firm with brand recognition 21:36    How to attract high-quality talent23:46    The day-to-day challenges of running a firm25:56    Maintaining culture with remote work30:56    The future of VC after the pandemic34:48    The amount of firms and innovation in the market today and what it means39:24    How the future is so hard to predict40:38    The best advice he’s gotten as a VC42:51    His biggest miss and the lesson he learned from it46:19    The advice he would give to a new managerMentioned In This Episode:* Uncork CapitalWe’d love to know what you took away from this conversation with Jeff! Follow @SamirKaji and give your insight and questions using the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop a direct message on Twitter.Podcast Production support provided by Agent Bee Agency This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com

Using data to make better investment decisions is a common theme these days, but Nnamdi Okike, co-founder and managing partner of 645 Ventures, a firm that uses unique, data driven methodologies to improve sourcing while helping to eliminate the biases that often present themselves when assessing new opportunities. Using public data that to accompany their own automated systems, they’ve found an interesting way to consistently find undiscovered founders. After leaving Insight Ventures, Nnamdi co-founded 645 Ventures in 2013 with Aaron Holiday, starting with a $8MM proof of concept fund. Since then, they raised a $40MM Fund 2, and most recently closed Fund III at $160M making them one of the largest underrepresented led managers in the United States. The fund focuses primarily on seed and series A and has a portfolio that includes companies such as Iterable, Goldbelly, Eden Health and Squire.Prior to starting his career, Nnamdi got his bachelor’s, JD, and MBA from Harvard. Our wide ranging conversation covers: considerations when growing fund sizes dramatically, the power of using data driven approach to sourcing, and his lessons as a venture investor over the last decade.In this episode we discuss the following topics:01:12    Nnamdi’s journey into venture capital03:37    The opportunity he saw to start 64509:20    How and why they raised $8M for their first fund12:27    Methodology around data that they use to decide on investing16:32    How 645 Ventures weeds out bias in their methodology20:58    The evolution of and growth of 64526:27    Deciding to jumping up weight class in the ecosystem; the value they add30:31    Using their connected network as a strategic advantage32:48    The future of data in VC34:06    His best advice to emerging managers36:22    His biggest portfolio miss40:31    What emerging managers should think about as they are startingMentioned In This Episode:* 645 Ventures* Insight VenturesWe’d love to know what you took away from this conversation with Nnamdi. Follow @SamirKaji and give your insight and questions using the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop a direct message on Twitter.Podcast Production support provided by Agent Bee Agency This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com

I’m extremely excited to bring you this week’s episode of Stephen DeBerry from Bronze investments. In addition to being an experienced investor at previous stops at Kapor Capital, Omidyar, The California Endowment, Stephen also developed the “Eastside” thesis which spoke to the inequities that are often present in eastern communities. He presented this thesis in a now viral TED Talk and was a factor in why Stephen decided to invest in change through Venture Capital at Bronze VC.Stephen did his undergrad at UCLA and his masters work at Oxford. He is a British Marshall Scholar and Henry Crown Fellow at the Aspen Institute. He was on the Board of the Dalai Lama Foundation and Ebony Magazine and The Root/Washington Post named one of the 100 most powerful African-Americans in the United States.We had a great conversation on social impact investing, GP commits, and why he feels strongly about helping the next generation of under represented managers.In this episode we discuss the following topics:01:25    Stephen’s journey into VC06:25    How the Eastside thesis came to be13:00    Why venture capital can solve certain social inequities17:35    The difficulty he faced in his first fundraise21:43    Advice to other non-traditional venture managers29:02    How investing in non-traditional companies affects portfolio construction33:00    Addressing the structural problems with the VC system38:15    The problem with anchoring on GP commit as a measure of alignmentMentioned In This Episode:* Stephen’s TED TalkWe’d love to know what you took away from this conversation with Stephen! Follow @SamirKaji and give your insight and questions using the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop a direct message on Twitter.Podcast Production support provided by Agent Bee Agency This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com