E28: Roland Reynold, Industry Ventures on Investing $7 Billion into Startups & Venture Funds

10X Capital Podcast

The 10X Capital podcast interviews the world's premier institutional investors to deliver insights on how they manage their capital. Interview topics include investment decision frameworks, capital allocation strategies, GP/LP relationships and many more.

E28: Roland Reynold, Industry Ventures on Investing $7 Billion into Startups & Venture Funds

E28 • Dec 14, 2023 • 45 mins

Roland Reynolds, Senior Managing Director at Industry Ventures, sits down with David Weisburd to discuss being one of the first investors in emerging managers and how he uses secondaries to drive alpha.

Key Points

Building authentic relationships with emerging managers is crucial for accessing transformational direct investments and early secondaries.
A diversified portfolio construction strategy, including primary commitments, early secondaries, and direct investments, helps mitigate risks and shorten the J-curve.
Flexibility in investment size and structure, such as using SPVs for pro rata rights, allows for unique collaborative opportunities with fund managers and access to high-potential companies.

We’re proudly sponsored by Bidav Insurance Group, visit lux-str.com if you’re ready to level up your insurance plans.

Speakers

Roland Reynolds

Guest • 90%

David Weisburd

Host • 10%

Chapters

0:00	Introduction and Primary Commitments to Emerging Managers
1:32	Overview of Industry Ventures' Size, Structure, and Team
2:48	Investing in Early Stage Funds, Secondaries, and Tech Buyouts
5:03	Addressing Risk, Duration, and J Curve in Early Stage Venture
7:19	Building and Maintaining Relationships with Fund Managers
9:28	Sponsor: Bidav Insurance Group
10:10	Evaluating and Profiling Successful Fund Managers
16:17	Portfolio Construction and Managing Losses in Seed Stages
19:23	The Role of Early Secondaries and Direct Investments
21:42	Portfolio Strategies, Time Diversification, and Alpha Generation
25:26	History and DNA of Industry Ventures and Embracing Tweener Rounds
30:49	Partnering with Managers: SPVs and Investment Flexibility
35:25	Importance and Key Features of PPMs for Emerging Managers
39:37	In-depth Operational Due Diligence for Emerging Managers
43:02	Reflections, Acknowledgements, and Importance of Passion in VC
44:21	Encouragement for Engagement, Closing Remarks, and Listener Appreciation

Transcript

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