This week on Swimming with Allocators, Earnest and Alexa welcome Laura Thompson, Partner at Sapphire Partners and Co-Founder at OpenLP. Laura shares her journey to becoming an allocator and discusses the guidance Sapphire is providing to GPs for 2025. Key topics include the complexities of venture reserves, the importance of data-driven decision-making, and the challenges faced by emerging managers. Laura also highlights the potential of sectors like fintech and AI, emphasizing the need for strong Relationships and adaptability in the evolving market. Also, don’t miss our insider segment as Shane Goudey and Mathew Eapen of Sidley join the show to discuss trends in venture fund structuring, and the evolving GP-LP relationship in investment funds and private equity.
Highlights from this week’s conversation include:
Laura’s Journey to Allocator (1:05)
Differentiators of Sapphire Partners (6:35)
Advice for New Allocators (9:54)
Shifts in Manager Selection Focus (11:41)
Understanding the Underwriting Process (14:57)
Balancing Emerging and Established Managers (16:09)
Characteristics of Successful Emerging Managers (18:04)
The Importance of Fund Size and Strategy (20:11)
Insider Segment: Trends in Venture Structures (27:11)
Consolidation of Relationships in Fundraising (29:02)
Emerging Managers and LP Categories (32:09)
Evaluating Established Firms (35:26)
Portfolio Construction Guidance (38:38)
Reserves Strategy in Venture Capital (41:20)
Challenges of Co-Investment Strategies (43:40)
Sapphire’s Resources for LPs (45:11)
Importance of Feedback and Strategy (48:20)
Final Thoughts and Takeaways (49:56)
Sapphire Partners has been Investing in early-stage venture capital funds since 2012 and seeks to identify and support the “New Elite” managers across the US, Europe and Israel who are uniquely suited to invest in the next generation of Technology category leaders. Through its underlying managers, Sapphire Partners has indirectly invested in over 3,200(6) companies since inception. Sapphire Partners looks to partner with managers across their journey as a GP and is focused on adding value beyond its capital commitments through value-add services, industry insights, and its efforts to demystify the ‘LP Perspective’ through the OpenLP initiative. Sapphire Partners is part of Sapphire, a specialized technology investment firm with more than $10 billion in assets under management across three distinct strategies and with team members across Austin, Menlo Park, San Francisco and London. To learn more, visit https://sapphireventures.com.
Sidley Austin LLP is a premier global law firm with a dedicated Venture Funds practice, advising top venture capital firms, institutional investors, and private equity sponsors on fund formation, investment structuring, and regulatory compliance. With deep expertise across private markets, Sidley provides strategic legal counsel to help funds scale effectively. Learn more at sidley.com.
Swimming with Allocators is a podcast that dives into the intriguing world of Venture Capital from an LP (Limited Partner) perspective. Hosts Alexa Binns and Earnest Sweat are seasoned professionals who have donned various hats in the VC ecosystem. Each episode, we explore where the future opportunities lie in the VC landscape with insights from top LPs on their investment strategies and industry experts shedding light on emerging trends and technologies.
The information provided on this podcast does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this podcast are for general informational purposes only.
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