Podcast Summary
Investing in education can lead to successful business ventures: Raising a fund and investing in unicorn companies despite debt is a worthwhile investment, and creating an educational and entertaining podcast can engage audiences in the new era of remote work.
Investing in a top-level education, even if it means accruing significant debt, can be a worthwhile investment. This was emphasized by Bree Kimmel, an investor in various work-related products, who shared her experience of raising her own fund and investing in multiple unicorn companies. Despite the challenges of remote work and the difficulties of getting business leaders to open up on podcast interviews, Bree and her co-host, Sam, have found success in their new podcast, "The Shake Up," where they interview business leaders about pivotal decisions that changed the course of their companies. The podcast aims to be both educational and entertaining, recognizing that in the new era of working from home, people are more likely to engage with content that is interesting and entertaining rather than corporate or boring. Bree highlighted Sam's ability to get interviewees to share vulnerable moments and be authentic, which she finds to be a challenging but rewarding aspect of the podcast.
Effective Communication and Preparation in Podcast Interviews: Having a skilled co-host and using a platform like HubSpot can enhance podcast interviews. Express emotions and leave a lasting impact.
Effective communication and preparation are key to successful podcast interviews. The hosts discussed the importance of having a skilled co-host, like a comedian, to put guests at ease and encourage open responses. They also highlighted the benefits of using a platform like HubSpot, which streamlines business operations and provides a single source of truth for customer interactions. Additionally, the hosts shared their personal experiences and revealed their roles and responsibilities on the show. A surprising revelation came from the discussion of a recent documentary about Anthony Bourdain, where they shared a moving story about the importance of expressing emotions and leaving a lasting impact.
Interacting with AI models of deceased individuals: AI models can mimic deceased individuals' voices and personalities, blurring reality and simulation, with ethical implications and potential impact on mental health and personal growth.
We are on the brink of a technological revolution where we will be able to interact with AI models that can mimic the voices and personalities of deceased individuals. This was exemplified by the case of Anthony Bourdain and the use of AI to read his final email. While some see this as a way to carry on a legacy or feel connected to the past, others find it creepy and potentially harmful. The line between reality and simulation may become increasingly blurred, as demonstrated in shows like Black Mirror. It's important to consider the ethical implications of these technologies and their potential impact on mental health and personal growth. The use case for such technology could range from creating a more immersive storytelling experience to potentially harmful behaviors like clinging to the past. It's crucial to approach this technology with caution and thoughtfulness. Additionally, there are existing examples of AI models being used to generate text or voice based on previous conversations, such as aiwriter.app. This technology, while impressive, also raises ethical concerns and highlights the need for careful consideration and regulation.
Personalized deep fakes for automated messages: Networking and building relationships are crucial in the tech industry for investing in successful companies early on.
Technology is advancing to create more personalized and automated interactions, such as deep fake videos that can be customized with personalized messages. This was discussed in relation to a company that allows individuals to record themselves thanking customers personally, but with the deep fake technology inserted to add a personal touch to the automated message. Another key point was the importance of networking and building relationships in the tech industry, which can lead to investing in successful companies at their early stages. The speaker shared her own story of starting out as a normal person but eventually becoming an investor in baller companies, emphasizing the importance of meeting people and staying in touch.
Building relationships in angel investing: Successful angel investing requires intentional relationship-building and efficient time management through organized events, research, follow-ups, and ad hoc strategy.
Successful angel investing involves intentional relationship-building and efficient time management. The angel investor in the discussion shared how they built close relationships with companies through organized workshops, no code dinners, and finding unique touchpoints. They also emphasized the importance of doing thorough research before pitches and following up efficiently through text messages. The investor's calendar showcased a structured day, with time dedicated to portfolio company support, pitch preparation, and administrative tasks. For those not in venture or early-stage startups, it's important to note that the process is highly inefficient and relies heavily on text and phone communication. Ad hoc strategy, which involves helping companies with go-to-market strategies, is also a crucial part of the angel investing role. Overall, the key takeaway is that intentional relationship-building and efficient time management are essential for successful angel investing.
Effective calendar management for productivity: Disciplined calendar management can minimize distractions, establish routines, and help manage a team. Consider having an assistant manage your calendar to optimize your day.
Having a disciplined calendar management system can be an effective tool for productivity and focus, especially for those who work from home or have a team to manage. The speaker shares how they had an executive assistant manage their calendar to minimize distractions and ensure structure in their day. This calendar discipline helped them establish routines, manage their team, and even say no to meetings. Additionally, the conversation touched upon the topic of venture capitalists' earnings, revealing that there's a significant range in base salaries, bonuses, and carried interest depending on the fund size.
Potential for High Earnings in Small VC Firms: Small VC funds under $100M offer high earning potential for partners due to smaller teams and larger percentages of carry, while larger funds face higher fees and carry expectations. The rise of solo capitalists and angel investors also signals a changing landscape for venture capital.
The venture capital industry is evolving, and opportunities for individuals to enter the field and build successful firms are increasing. According to the discussion, small funds under $100 million have the potential for high earnings for their partners due to their smaller team sizes and larger percentages of carry. On the other hand, larger funds face significantly higher fees and carry expectations. The speaker also mentioned the rise of solo capitalists and angel investors who are able to deploy significant capital and achieve high returns. The nature of venture is changing, and there will likely be more individuals starting their own firms in the future. Elad Gil, mentioned in the conversation, is an example of an individual who has built a successful venture firm using a combination of personal capital and outside money. Overall, the venture capital landscape is becoming more accessible to a wider range of individuals, and the potential for high returns remains a significant draw.
Alternative to company work or starting a business: Solo capitalist or investment fund: Building a solo capitalist or investment fund offers potential for substantial returns but requires significant time, effort, and illiquidity. Attract investors with a strong personal brand and track record using platforms like Angelus and Carta.
Becoming a solo capitalist or raising your own investment fund can be a viable alternative to working for a company or starting a business, but it requires significant time, effort, and illiquidity. The first few years may only yield a salary-like income, but the potential for substantial returns by the seventh or tenth year can make the overall investment worthwhile. However, building a strong personal brand and track record is essential to attract outside investors. Platforms like Angelus and Carta simplify the process by connecting investors and managing back-office tasks. Ultimately, the amount of money one can make depends on individual success and the size and timing of exits in their portfolio companies.
Rolling funds: Continuously raise funds with your network: Rolling funds enable solo investors to continuously grow their funds using their networks and distribution channels, earning management fees and potentially large returns from later-stage investments.
Rolling funds offer solo capitalists the flexibility to continuously market and grow their investment funds while minimizing the time spent on fundraising. With rolling funds, individuals can take advantage of their existing networks and distribution channels to bring in new Limited Partners (LPs) and potentially raise larger funds than initially planned. This model has become increasingly popular due to the changing landscape of venture capital, where individuals with valuable networks and the ability to identify high-growth opportunities can find success in both early and later-stage investments. Rolling funds allow these individuals to earn management fees of around 2-3%, providing a reasonable salary while they build their fund and invest in promising startups. Although carry may not be an immediate source of income, the potential for significant returns in later-stage investments is a significant draw for many solo capitalists.
Unique wealth management strategies in the investment world: Successful investors reinvest profits, explore creative methods like buying employee shares or using SPVs, and focus on emerging fields like crypto and climate change for potential long-term gains.
Successful individuals in the investment world, such as those in the crypto space, have unique strategies for managing their wealth and growing their funds. One approach involves keeping a significant portion of profits from a successful fund to reinvest, while also considering creative methods like buying employee shares in companies or using Special Purpose Vehicles (SPVs) to invest in secondary markets. Another key trend is the growing focus on areas like crypto and climate change, with many bright minds moving into these fields and leaving well-paying jobs to work on projects they care about deeply. While the financial rewards may not be immediate, these new opportunities could lead to significant long-term impact and innovation.
Specialized firms, climate change, frontier tech, education, and networking: Explore specialized firms in climate change, frontier tech, and education for unique investment opportunities. Networking with experts in these fields can add value. Consider new learning platforms and styles for children's interests.
There is a growing trend towards specialized firms focusing on areas like climate change and frontier tech, and the value of networking with experts in these fields. Another intriguing area of investment is in education and reskilling, particularly for new platforms and styles of learning that align with children's interests and hobbies. Despite the common perception that education is broken, top universities are still providing valuable opportunities for those willing to take on significant debt. However, the real value may not be in the learning itself, but rather in the prestige and network gained from attending these institutions. Overall, the future of work and education is shifting towards more specialized, interest-driven, and community-focused learning experiences.
Feeling left out due to attending a less prestigious university: While attending a prestigious university can offer benefits, success is not limited to those schools. Personal growth and opportunities for success exist regardless of the university attended.
Attending a prestigious university like Harvard can provide significant benefits in terms of reputation and networking opportunities. However, for those attending less renowned institutions, the value may not be as apparent, leading some to question the worth of education beyond the top-tier schools. The speaker shares his personal experience of feeling left out when interacting with friends who attended Ivy League schools, leading him to reflect on the potential missed opportunities. Ultimately, the speaker believes that only the top twenty or so universities should be kept, as they are the ones that provide the most value in today's job market, where AI scans resumes for specific names. However, he acknowledges that he once held a different opinion and that attending a less prestigious university does not necessarily mean a lack of success.
Beyond academics: Friends, social connections and virtual collaboration platforms: Friends and social connections expand horizons in college, while virtual collaboration platforms offer exponential growth opportunities in the investment world.
The value of higher education goes beyond just academics. During a conversation, the speaker shared how his friends' experiences and social connections during college surpassed his initial expectations and broadened his perspective. He also highlighted the importance of social experience and the need for institutions to focus on providing more than just information. In the investment world, the speaker expressed excitement about companies like Hopin, which offer disruptive virtual collaboration platforms, and emphasized the potential for exponential growth in these areas. Ultimately, the speaker suggested that the future of education and investment lies in providing holistic experiences that cater to multiple needs beyond just academic learning.
Disruptive startups and innovative funding solutions: Disruptive startups like Pipe offer non-dilutive capital for recurring revenue companies, gaining attention from investors for their innovative funding models, even if they don't fit typical software-focused business models.
Disruptive startups, like Pipe, which offers non-dilutive capital for companies with recurring revenue, are changing the venture capital landscape. These companies may not fit the typical software-focused business models preferred by VCs, but they're gaining attention due to their innovative funding solutions. Harry Hurst, the founder of Pipe, generated significant buzz in the industry, and investors, like the speaker, were eager to learn more. Despite not having a prior relationship with Harry, the speaker was determined to invest after their chance encounter at Soho House. The hype surrounding Pipe was due to its disruptive funding model, which aligned with the interests of investors who saw potential in this new approach to raising capital. Founders may face initial challenges in fundraising, but as more investors show interest, the buzz grows, and the opportunity becomes more compelling.
Securing non-dilutive financing in the final stages of fundraising: Exceptional fundraisers can secure non-dilutive financing, even at high valuations, leading to significant returns for early investors and employees through resources like PIPE.
The last stages of fundraising can be chaotic due to the ripple effect of investors and interested parties getting involved. However, for exceptional fundraisers like Harry, who have built strong relationships and a compelling story, securing non-dilutive financing through resources like PIPE can lead to significant returns, even at high valuations. The availability of vast amounts of capital in the ecosystem drives up valuations, making it advantageous for early investors and employees alike. Despite the complexities and potential math involved, the key is to focus on investing in visionary teams and founders, and the returns can exceed expectations.
Consistent growth and prioritization for long-term success in VC: Focus on personal annual goals for growth, prioritize tasks effectively, and tune in to Brianne Campbell's podcast for valuable VC insights
Focusing on consistent growth, whether through SPVs or secondary buys, is essential for long-term success in the venture capital industry. It's not necessary to aim for a massive fund right away, but rather to work towards a personal annual goal that brings happiness. Time management is crucial, and prioritizing tasks effectively, such as text triage, can help maximize productivity. Brianne Campbell, a successful VC, emphasizes this approach and encourages listeners to find her on her podcast, where they can subscribe and stay updated on her insights and experiences. The podcast is currently live, so go ahead and check it out for valuable information on navigating the venture capital world.
