“When you bring people in as partners, being generous around compensating them from funds they did not build can help create alignment because they’re not sitting there getting rich off of something that started five years ago and exits in ten years. So they’re kind of on an island because everybody else is in a different economic position and that can be very isolating.” – Jaclyn Freeman Hester
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
Listen to the episode on Apple Podcasts and Spotify. You can also watch the episode on YouTube here.
You can also find Part 1 and Part 2 of this 3-part mini series.
Brought to you by Alchemist Accelerator.
OUTLINE:
[00:00] Intro
[01:55] Lisa on documenting the how and why behind decisions
[05:52] Ben on leadership transitions at VC firms
[08:08] GP commits by young GPs at established firms
[11:56] What makes Kauffman Fellows special
[14:33] Should Kauffman sponsor Superclusters?
[15:34] A rising tide raises all ships
[16:41] Partnerships that choose to stay together
[18:21] Jaclyn on leadership transitions at VC firms
[25:48] The economics of succession planning
[31:28] Lisa on succession planning vs wind-down planning
[33:10] Jaclyn on pros & cons of succession planning & committee decisions
[41:50] Thank you to Alchemist Accelerator for sponsoring!
[42:51] If you liked this 3-part series, do let us know with a like or a comment below!
SELECT LINKS FROM THIS EPISODE:
- Screendoor
- Next Legacy
- Foundry Group
- Why an LP of GPs is Uniquely Valuable | Lisa Cawley | Superclusters | S3E5
- How to Build a Multi-Fund VC Firm | Ben Choi | Superclusters | S1E6
- Qualitative Signals to Look for in Emerging GPs | Jaclyn Freeman Hester | Superclusters | S2E9
- Silicon Valley Bank
- Kauffman Fellows
- Young Presidents’ Organization (YPO)
- Storm Ventures
- Kelli Cullinane
- PayPal mafia
- Fairchild Semiconductor
- Sequoia Capital
- Benchmark
- Hustle Fund
- Eric Bahn
- Brian Nichols
- Elizabeth Yin
SELECT QUOTES FROM THIS EPISODE:
“If it’s not documented, it’s not done.” – Lisa Cawley
“If somebody is so good that they can raise their own fund, that’s exactly who you want in your partnership. You want your partnership of equals that decide to get together, not just are so grateful to have a chance to be here, but they’re not that great.” – Ben Choi
“When you bring people in as partners, being generous around compensating them from funds they did not build can help create alignment because they’re not sitting there getting rich off of something that started five years ago and exits in ten years. So they’re kind of on an island because everybody else is in a different economic position and that can be very isolating.” – Jaclyn Freeman Hester
“When you think about succession planning, you actually have to take a step back and think: Is that even going to be my approach? Do I need to think about succession planning or am I really talking about wind-down planning? And when I stop raising a subsequent fund.” – Lisa Cawley
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