Joshua Berkowitz of Berkocorp, sits down with David Weisburd to discuss investing in venture capital as a family office and why all investors should care about IRR (and not TVPI). We’re proudly sponsored by Bidav Insurance Group, visit lux-str.com if you’re ready to level up your insurance plans.
The Limited Partner podcast is part of the Turpentine podcast network. Learn more: turpentine.co
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X / Twitter:
@berkowitz_josh (Joshua)
@dweisburd (David)
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LINKS:
Berkocorp: https://www.berkocorp.ca/
Dexa.ai: https://dexa.ai/
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SPONSOR: Bidav Insurance Group
The Limited Partner Podcast is proudly sponsored by Bidav Insurace Group.
Today's episode is sponsored by Bidav Insurance Group. Bidav Insurance Group is run by my close friend, Amit Bidav, who insures me both personally and at the corporate level.
Most people are not aware of the inherent conflicts in insurance, where insurance agents are incentivized to send their clients to the most expensive option. Amit has always been an incredible partner to me and 10X Capital, driving down our fees considerably while providing a premium solution. I am proud to personally endorse Amit and I ask that you consider using Bidav Insurance Group for your next insurance need, whether it be D&O, cyber, or even personal, car, and home insurance.
You could email Amit at amit@luxstr.com.
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Questions or topics you want us to discuss on The Limited Partner podcast? Email us at david@10xcapital.com
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TIMESTAMPS
(00:00) Episode Preview
(01:27) Joshua’s background
(03:25) How venture fits within a family office
(04:22) “Everyone’s an IRR investor”
(05:41) How to invest in venture and manage capital calls
(08:02) Why time diversification is important
(10:42) The importance of always being in market
(12:44) How to find and evaluate venture managers
(14:41) GP strategy fit
(15:52) Episode Sponsor: Bidav Insurance Group
(16:45) How to predict whether a manager can pick a powerlaw company
(17:34) Joshua’s powerlaw GPs
(18:48) Messy (or diversified) portfolio
(21:04) Aiming for 20% IRR
(22:22) Why Joshua likes diversified over concentrated
(24:01) GPs need to be “rough around the edges”
(26:25) The difference between early and late stage collaboration
(27:27) The different ways to win
(29:09) Can anyone beat Sequoia and Andreessen?
(29:45) Generational transfers
(31:05) Founder vs Operator CEOs
(32:44) How Joshua diligences emerging managers and what you need in a dataroom
(40:41) Portfolio construction
(41:25) How to communicate with LPs
(48:56) Joshua’s view on follow-on strategy
(52:05) The difficulty of succeeding across all stages
(54:30) Change in graduation rates
(56:17) Venture investing mistakes to avoid
(57:50) How to approach co-investments
(01:01:31) Dexa.ai
(01:01:54) Why Joshua is a great LP
