Why Invest in Early-Stage Key-Node VCs with Frank Tanner [Video]

This week on Swimming with Allocators, Earnest and Alexa welcome Frank Tanner, Director at Morgan Creek Capital Management. During the episode, the group explores the historical evolution of venture capital, and the concept of key-node VCs. The episode also covers the criteria for selecting micro VCs, the importance of the three “S’s” (source, select, and support), and the role of networks in deal selection. Also, don’t miss our special insider segment with John Ling of Canopy as he makes the argument for why VC should not be a part-time job and clarifies the differences between running a syndicate and a fund.

Highlights from this week’s conversation include:
The Venture Landscape (0:23)
Investing in Venture (3:18)
The Evolution of Venture (5:16)
Rise of Key-Nodes (8:38)
Challenges and Opportunities for Key-Nodes (12:36)
Criteria for Micro VCs (18:35)
Selecting and Supporting Venture Capitalists (18:51)
Examples of Successful Fund Managers (25:14)
Misconceptions in Working with Organizations (27:38)
Insider Segment: The Role of Technology in AltAssets (31:25)
The syndicate vs fund structure (36:08)
Misconceptions about venture capital (37:26)
Selecting and evaluating early stage funds (39:32)
Challenges in selecting venture capital managers (41:44)
Novel strategies and considerations in venture capital (44:31)
Hype cycles and emerging trends in venture capital (45:54)
Connecting with Frank and Morgan Creek Capital (48:20)
Final thoughts and takeaways (49:57)

Morgan Creek Capital Management, LLC is an SEC-registered investment adviser founded with a vision of offering institutional and family office investors the same forward-looking strategies that made the large university endowments its leadership had previously managed so successful: integrating alternative investments into traditional equity and fixed income portfolios. Morgan Creek provides a customized outsourced investment office to clients in need of a targeted solution, as well as discretionary strategies to assist clients in building investment programs based on the University Endowment Model. Many members of our senior investment team have a fiduciary pedigree, having previously worked at some of the top university endowment programs in the country (Notre Dame, UNC-Chapel Hill, Duke and Stanford), and with this experience of allocating capital across all asset classes, the firm has built a global network with access to what we believe to be top-tier investment managers.

Canopy is a fintech company on a mission to democratize access to private investments. We believe early access to world-changing projects should not be limited to the ultra-wealthy. By automating the process of private investment with a technology-first approach, we are building a future where investing in alternative assets is simple and streamlined for both managers and individual investors alike. Learn more at www.heycanopy.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. Follow along and subscribe at swimmingwithallocators.com.

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.