Three Key Criteria for Evaluating VC Managers: Decision-Making, Specialization, & Operations

This week on Swimming with Allocators, Earnest Sweat and Alexa Binns welcome Michael Ashley Schulman, Chief Investment Officer and Founding Partner of Running Point Capital. Michael discusses his journey into investment management and the founding of Running Point. He emphasizes the importance of tailored financial solutions for families, highlighting the opportunities in alternative assets. Schulman delves into his criteria for evaluating emerging managers in venture capital, emphasizing intelligence, specialization, and efficient operational systems. He also addresses the distinction between ESG and impact investing, provides advice for allocators new to venture capital, and stresses adaptability as a key trait for manager survival in the industry. The episode also features Tyler Kirtley, partner at Gunderson Dettmer, who recommends new managers avoid overly inventive or complex terms in their financing agreements, emphasizing simplicity and operational excellence instead.
Highlights from this week’s conversation include:
The origin story of Running Point Capital (1:11)
Transition from public stocks to venture (4:30)
Running Point's unique investment philosophy (7:13)
Building a Due Diligence Network (8:57)
Fostering Long-Term Relationships (10:23)
Advice for Managers Launching Their First Fund (14:07)
Challenges and opportunities for family offices (19:21)
Criteria for selecting venture capitalist managers (21:42)
ESG vs. impact investing (24:18)
Building and Selling Companies in Challenging Times (30:35)
Final thoughts and takeaways (31:35)
Running Point Capital is a multifamily office that provides a comprehensive and personalized approach to financial management. Their team of experts, covering various disciplines, collaborates to address the diverse financial needs of their clients, including wealth management, financial planning, estate and trust planning, tax preparation, insurance, and more. The firm stands out for its one-stop-shop model, offering a range of services under a single roof, focusing on personalized service, clear communication, and a lifelong connection with their family clients. Emphasizing a true family office approach, Running Point Capital is committed to understanding the unique objectives of each client, constantly evaluating innovative strategies to drive intended financial results.
Gunderson Dettmer is a law firm specializing in providing legal services to the startup and venture capital communities. With a primary focus on technology and life sciences sectors, the firm is known for its expertise in guiding emerging companies through various stages of growth, from formation to financing and beyond. Gunderson Dettmer's comprehensive legal support includes advice on corporate governance, intellectual property, mergers and acquisitions, and venture capital transactions, making it a trusted partner for innovative enterprises navigating the complex legal landscape. 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.
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.