20VC: CapitalG Founder David Lawee on Why People Overvalue Diversification in Venture, Why Investment Clubs Are More Successful Than Investment Partnerships & How Growth Funds Think About Portfolio Construction, Loss Ratio & Reserves

David Lawee, founder of CapitalG, Alphabet's independent growth fund, discusses his journey into investing and the evolution of his investment mindset. Lawee emphasizes the challenges entrepreneurs face during volatile market cycles, particularly in managing capital and competition. He advocates for maintaining a high standard for investment opportunities across sectors and countries, even during bull markets, and stresses the importance of separating from short-term market fluctuations. CapitalG's decision-making process is highlighted, with individual investment decisions informed by group insights, fostering a culture of learning and risk-taking. Lawee also shares his approach to board membership, emphasizing the need to understand and adapt to different management teams.