Venture Capital for the State of California with Derrick Tang of IBank California

This week on Swimming with Allocators, Earnest and Alexa welcome Derrick Tang, Deputy Director of Venture Capital at IBank California. During the episode, Derrick discusses his journey from a chemical engineer to leading California's first public venture fund focused on underrepresented fund managers, entrepreneurs, and climate justice investments. He emphasizes the importance of aligning venture capital with public interests, addressing funding disparities, and supporting diverse decision-makers. Derrick concludes by inviting fund managers and limited partners to collaborate with them, particularly on issues relevant to California. Dave Thornton from Vested also shares how the haircut to fair market value has been influencing employees.
Highlights from this week’s conversation include:
Derrick’s background in venture capital (0:19)
Transition to public sector (2:27)
The Government's role in innovation (4:55)
Public perception of government in venture capital (8:40)
Government programs for venture capital (10:48)
Constraints of public funding (13:11)
Coordination among state programs (15:18)
Purpose of public venture funds (17:14)
Supporting Underrepresented Small Businesses (17:34)
Investing in Diverse Teams (22:41)
Insider Segment: Vested’s Differentiation from Competitors (24:59)
Considerations for Pre-IPO Shares (25:35)
Thought Leaders in the LP Community (27:11)
Allocation for Diversity and Climate (29:16)
Definition of Climate Justice (31:01)
Unique Aspects of Climate Investing (34:02)
Mission and Returns in Inclusive Investing (37:30)
Fund Size and Deployment (40:35)
Final thoughts and takeaways (42:15)
Derrick Tang serves as the Deputy Director of Venture Capital at IBank California, a role he was appointed to by Governor Gavin Newsom. With a rich background in climate change, venture capital, and government leadership, Derrick has dedicated his career to increasing access to capital for entrepreneurs. His work focuses on supporting underrepresented fund managers and entrepreneurs, with an additional emphasis on climate justice investments. Derrick's previous roles include leading the Climate Investments team at the Bay Area Air Quality Management District and managing grants at the California Clean Energy Fund (CalCEF). He holds a B.S. in Chemical Engineering from Cornell University and is passionate about leveraging venture capital to drive social and environmental change.
Vested empowers startup employees to capitalize on their hard-earned equity, primarily by providing funding to help exercise stock options. The company’s overarching mission is to democratize access to equity, ensuring that startup employees both understand and have a real chance to tangibly benefit from the shares they’re granted.
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.