E93: Why Do Most VC’s Underperform?

09/10/24 • 29 min

John Gleeson, Founder & General Partner at Success Venture Partners sits down with David Weisburd to discuss the underappreciated secret to Venture Capital success, why operator LP’s outperform, and the math behind portfolio concentration.

The 10X Capital Podcast is part of the Turpentine podcast network. Learn more: turpentine.co

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X / Twitter: @dweisburd (David Weisburd) @JohnGleeson10 (John Gleeson)

LinkedIn: John Gleeson: https://www.linkedin.com/in/johngleeson10/ Success Venture Partners: https://www.linkedin.com/company/success-venture-partners/ David Weisburd: https://www.linkedin.com/in/dweisburd/

LINKS: Success Venture Partners: https://successvp.com/

Questions or topics you want us to discuss on The 10X Capital Podcast? Email us at [email protected]

(0:00) Episode Preview (1:43) Introduction to Success VP and its founding story (3:43) The role of customer success in increasing startup value (6:00) Common mistakes founders make in customer success (7:40) Specialization in customer success roles (8:43) Metrics for balancing sales and customer success efforts (12:28) The importance of empathy and customer feedback in product development (14:54) Why customer success often gets less attention than sales in Silicon Valley (17:54) Success VP fund thesis and investment strategy (20:05) How Success VP gets into top deals and the value of customer success (23:31) Building operator LP capacity and leveraging networks (26:25) Portfolio construction and strategy alignment (29:28) Closing remarks

The 10X Capital Podcast is part of the Turpentine podcast network. Learn more: turpentine.co

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X / Twitter: @dweisburd (David Weisburd) @JohnGleeson10 (John Gleeson)

LINKS: Success Venture Partners: https://successvp.com/

Questions or topics you want us to discuss on The 10X Capital Podcast? Email us at [email protected]

Previous Episode

E92: How FT Partners Beats Bulge Bracket Banks (Steve Mclaughlin)

Steve McLaughlin, CEO at Financial Technology Partners sits down with David Weisburd to discuss the hidden values and success of top fintech companies, insider perspective on the work-life balance myth, and the powerful face-to-face strategies that elite companies swear by.

The 10X Capital Podcast is part of the Turpentine podcast network. Learn more: turpentine.co

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X / Twitter: @dweisburd (David Weisburd) @FTPartners (Steve McLaughlin)

LinkedIn: Steve McLaughlin: https://www.linkedin.com/in/stevemclaughlinftpartners/ FT Partners: https://www.linkedin.com/company/financial-technology-partners/ David Weisburd: https://www.linkedin.com/in/dweisburd/

LINKS: FT Partners: https://ftpartners.com/

Questions or topics you want us to discuss on The 10X Capital Podcast? Email us at [email protected]

(0:00) Episode preview (3:45) Exclusively focusing on fintech and its challenges (5:16) How FT Partners differentiates from larger banks (11:41) Strategies for incentivizing employees and business growth (17:03) Scaling the organization and preserving culture (19:27) Utilizing data for operational insights and investor storytelling (22:33) Case studies: Revolut's valuation and the role of bankers (27:09) Insights on valuing companies in the fintech space (30:31) Work-life balance and the importance of in-person interactions (33:33) Delegating responsibilities and evolving business focus (36:02) The significance of team and client relationships in fintech (37:16) Closing remarks

Next Episode

E94: How to Invest $70 Billion

Tony Meadows, Partner at Sinefine sits down with David Weisburd to discuss what initial investment choice could make or break your portfolio, when to dive into early-stage investments, and how strategic timing can turn ordinary investments into extraordinary gains.

The 10X Capital Podcast is part of the Turpentine podcast network. Learn more: turpentine.co

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X / Twitter: @dweisburd (David Weisburd)

LinkedIn: Tony Meadows: https://www.linkedin.com/in/tonymeadows/ Sinefine: https://www.linkedin.com/company/sinefine/ David Weisburd: https://www.linkedin.com/in/dweisburd/

LINKS: Sinefine: https://www.sinefine.co/

Questions or topics you want us to discuss on The 10X Capital Podcast? Email us at [email protected]

TIMESTAMPS:

(0:00) Episode Preview (2:44) Asset class selection and adverse selection in investments (3:25) Partnering strategies and execution in co-investments (4:35) Governance, decentralization, and GP relationships (6:54) Portfolio construction and strategy within private equity (8:34) Impact of check size on venture capital investments (11:20) Pension funds' role and challenges in venture capital (13:10) Benefits, returns, and market coverage for pension funds (14:06) Building a venture capital portfolio for pension funds (15:51) Multistage funds, emerging managers, and fund twos (18:17) Outsourcing strategies and manager performance data (23:52) Criteria and challenges of investing with Sinefine (26:37) Gender dynamics in sourcing and generating alpha (31:16) Portfolio construction and diversification at Sinefine (35:16) Working with pension funds and compensation structures (39:14) Closing Remarks