Capital Allocators – Inside the Institutional Investment Industry Venture Capital Panel – Beezer Clarkson, Chris Douvos, and Joelle Kayden (Capital Allocators, EP.299)
Feb 27, 2023
Beezer Clarkson, a respected investor at Sapphire Ventures, Chris Douvos of Ahoy Capital, and Joelle Kayden from Accolade Partners dive into the current state of venture capital. They explore the challenges facing venture capitalists post-market selloff, discuss funding discipline, and the impact of fresh entrants on strategies. The trio also highlights future opportunities, especially in the blockchain sector, and shares insights on navigating seed stage valuations and the importance of seasoned management in these turbulent times.
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Chapters
Transcript
Episode notes
Re-ups and New Funds
- Re-underwrite every manager, especially with increased fund sizes and strategy drift.
- Prioritize new managers who are hungry and driven, especially first-time or institutional funds.
Concentrated Portfolio and Growth
- Chris Douvos prioritizes concentrated portfolios and seeks new managers, creating a selection challenge.
- He recounts a manager who grew their fund significantly to compete with larger firms, neglecting cost of capital.
Know Your LP
- Venture capitalists should understand their LP base and anticipate their investment committee dynamics.
- Cultivate diverse investors and understand their constraints to secure future funding.