If you were to start a Venture Fund, how would you do it ? | Women In Finance | Claudia Zeisberger

Summary

In this insightful discussion, the award-winning teacher and respected figure in the private capital space shares his perspective on starting a venture capital business today. He emphasizes the importance of a hands-on approach, engaging closely with entrepreneurs to build successful businesses, rather than adopting the 'spray and pray' strategy. He believes that the key to success lies in forming a team with entrepreneurial expertise and the ability to add value beyond just capital, highlighting the significance of the human element in venture capital investments.

Takeaways

• 🏆 The speaker has won the 'Best Teacher of the Year' award, highlighting their expertise and influence in the field.
• 💼 The speaker is recognized in the private capital space, indicating a strong professional network and understanding of the industry.
• 🚫 A clear rejection of the 'crossover funds' model, suggesting a preference for traditional venture capital approaches.
• 🤝 Emphasizes the importance of a close relationship between venture capitalists and entrepreneurs for successful business building.
• 💡 Refers to venture capital as 'true creative capital' when it aids in the development of businesses, a concept attributed to George Doro.
• 🚫 Criticizes the 'spray and pray' approach to venture capital, implying it lacks the hands-on strategy the speaker prefers.
• 👥 Advocates for building a team with entrepreneurial expertise to better understand and support the entrepreneurs they invest in.
• 🤔 Questions the feasibility of the hands-on approach in the current market, acknowledging changes in private and public markets.
• 💡 Suggests that the value a venture capitalist brings, beyond just money, is the key differentiator in a crowded market.
• 🤝 Highlights the need for an 'educated entrepreneur' who recognizes the value of the venture capitalist's contributions.
• 🔄 Notes that venture capital is still a 'people business' where successful partnerships can lead to substantial outcomes.

Q & A

What is the speaker's view on the current venture capital model?

The speaker believes that the current model, which they refer to as 'spray and pray,' does not align with the traditional venture capital approach they prefer.

What award has the speaker recently won?

The speaker has won the 'Best Teacher of the Year' award as voted by the students.

How does the speaker define 'true creative capital'?

'True creative capital' is defined by the speaker as venture capital that engages closely with entrepreneurs to help build the best possible businesses.

What approach does the speaker advocate for in venture capital?

The speaker advocates for a hands-on approach where venture capital investors support and help entrepreneurs build their businesses.

What type of team would the speaker build for a venture capital business?

The speaker would build a team with entrepreneurial expertise and experience working with entrepreneurs, who can relate to them and provide valuable support.

What has changed in private and public markets that the speaker acknowledges?

The speaker acknowledges that private and public markets have seen significant changes, including more participation in venture investing and a greater amount of capital under management.

What is the speaker's view on the role of money in venture capital today?

The speaker believes that money is no longer a differentiator in venture capital; instead, the differentiator is the value and network that a venture capital investor brings to the table.

What does the speaker see as essential for a successful venture capital partnership?

The speaker sees the partnership between venture capital investors and entrepreneurs as essential, where both parties see value in what the other brings to the table.

How does the speaker describe the current state of capital in private capital markets?

The speaker describes the current state as having more capital and assets under management in venture capital and private equity than ever before, with a record amount of 'dry powder' available for investment.

What is the speaker's opinion on the importance of an educated entrepreneur?

The speaker appreciates the importance of an educated entrepreneur but emphasizes that venture capital is still a people business, and the partnership between investor and entrepreneur is key.

What does the speaker imply about the future of venture capital investing?

The speaker implies that despite the changes in the markets and the increase in capital, the future of venture capital investing still heavily relies on the quality of the relationships and the value provided by the investors.