Welcome to The Legacy Wealth Podcast where we help accredited business owners become educated & get access to, private investments that the wealthiest investors in the world utilize to grow their net worth. We do this by providing insight & access to successful fund managers & investors across multiple asset classes.
We are your hosts, Pascal Wagner & Mike Klein, and today we are interviewing Seth Levine, Partner @ Foundry Group and we're diving into:
- How much of your portfolio should be made up of VC funds?
- Questions to ask a VC fund manager as part of your due diligence process
- Why venture investing is a long term commitment?
With that said, let’s get to it!
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Links from this episode:
- If you're looking for highly vetted opportunities to invest in, get access to our deal database of alternative investments & join our investor club at www.getfundbase.com.
- Watch video on YouTube here: https://youtu.be/f5K5K3nEjJM
Links from our Guest
- https://twitter.com/sether
- https://www.linkedin.com/in/sethjlevine/
- www.sethlevine.com
- www.thenewbuilders.com
Time Stamp:
00:00 - Intro
00:51 - The concept of venture capital
01:30 - The importance of including private assets in a portfolio
02:27 - The importance of diversification and risk-adjusted returns
03:45 - Seth Levine explains the purpose and role of venture capital in the economy
05:00 - The significance of venture capital in the growth of companies like Google and Amazon.
06:10 - The uniqueness of Venture Capital as an asset class
09:23 - Importance of understanding fund strategies and stages in Venture Capital
10:00 - Seth Levine emphasizes the need for a long-term investment perspective in Venture Capital
12:45 - Seth Levine discusses the impact of the pandemic on venture capital
14:09 - Difference between venture capital and private equity
16:00 - The need for a meaningful amount of money
17:30 - Angel investments and the need to be comfortable with potential losses.
18:00 - The learning curve and partnership benefits in venture capital.
19:30 - The difference between managing in upmarkets and downmarkets
22:06 - Seth Levine discusses the challenges of finding good deals, evaluating teams, and market analysis as a VC.
23:44 - The role of luck in venture capital and the need for skill in evaluating investments.
25:27 - The importance of continuous learning and adapting in the VC industry
27:17 - The importance of planning for the next funding round to avoid running out of money
29:25 - The difference between discussion topics and decision topics during board meetings
31:54 - The involvement of due diligence
36:29 - The importance of being declarative in difficult decisions
38:00 - Deal flow attraction and portfolio construction strategy
41:00 - Seth's approach to managing the risk profile of investments
42:45 - The average time it takes for a venture fund to return the investment
45:35 - The role of market timing and valuation
49:05 - The team sport aspect of venture investing
49:52 - The discussion shifts to the recent crisis involving SVB (Silicon Valley bank)
51:15 - The measured response of most VCs during the SVB crisis
52:45 - The need for flexibility and reconsideration of banking agreements
54:03 - GSIBs (Globally Systemically Important Banks)
55:19 - The importance of evaluating banking relationships and risk management becomes a diligence question for LPs
56:27 - Outro
Creators & Guests
Host
Mike Klein
VC, Digital Asset Fund Manager, Entrepreneur
Host
Pascal Wagner
I help accredited entrepreneurs & executives in the US replace their primary income through private investments.
Guest
Seth Levine
Partner @ Foundry Group
What is Grow Your Cashflow Podcast?
Welcome to Grow Your Cashflow Podcast where we help accredited investors learn how to earn consistent monthly passive income from private placements.
If you're uncertain about where to invest for dependable returns, have limited access to exclusive opportunities like private placements, or are looking for expert insights and guidance on generating consistent income across various asset classes, then this show is tailored just for you.
By listening to this show, you'll achieve your passive income goals faster by learning:
🚀 Proven strategies to secure monthly passive income.
💡 Expert insights from successful fund managers and investors.
🌐 How to access exclusive opportunities in private placements.
📈 Techniques to diversify across multiple asset classes for a robust portfolio.
💰 The well-guarded secrets of wealth accumulation used by the world's elite.
Try listening to our most popular episodes on your favorite podcasting platform or on YouTube. We look forward to you joining our community of investors. You’ll be one step closer to growing your cashflow!