E68: The Smithsonian Institution’s Venture Capital Edge

This podcast episode explores the importance of venture capital in asset allocation, emphasizing its historically high returns and the need for cautious capital allocation. It also discusses the significance of consistent capital allocation and diversification in endowment investing. The episode highlights the prioritization of the venture portfolio over buyout and other private equity, citing its high returns and accessibility. It delves into effective communication practices between LPs and GPs, the concerns when evaluating venture capital managers, and the qualities that compel investors to invest in a manager. The conversation also touches on the considerations for funds of different sizes and the importance of sector diversification. Overall, the episode provides insights into the role of venture capital in investment strategies and the mission of the Smithsonian in fostering learning.