In this podcast episode, Justin Smith, Managing Partner at Recharge Capital delves into his venture capital journey, his experiences at Recharge Capital and Tusk Ventures, and the intricacies of angel investing and SPVs. Justin shares his transition from auditing to venture capital, his approach to building a sourcing network, and the importance of partnerships in investing. He discusses the strategic role of distribution channels in fintech and healthcare startups, the impact of brand names on cap tables, and the current state of M&A in venture capital. Justin also touches on fund dynamics, such as liquidity events and reserve allocations, and concludes with personal insights on fundraising and relationship building, highlighting the usefulness of AngelList for SPVs and syndications, and much more.

Timestamps

The journey to venture capital (00:00:03)

Transition to SPVs and Recharge Capital (00:02:56)

Differences between SPVs and institutional capital (00:08:45)

Building partnerships through angel investing (00:14:35)

Diversifying the investment portfolio (00:15:10)

Importance of distribution channels in startups (00:18:57)

Distribution as a Key Issue (00:18:57)

Building Partnerships and Distribution Channels (00:20:07)

Brand Names on Cap Tables (00:22:12)

Clubbed Rounds and Founder Strategies (00:23:06)

M&A Activity in the Next 12 Months (00:25:03)

Misalignment Between VCs and LPs (00:26:22)

Liquidity and Reserve Allocation (00:29:45)

Follow-on Investments and Fund Dynamics (00:31:36)

Venture Decision-Making and Postmortems (00:33:59)

Ownership Allocation in Companies (00:36:17)

Justin’s Links

LinkedIn –  https://www.linkedin.com/in/justin-b-smith/

Email - [email protected]

Recharge Capital - https://www.rechargecapital.com/

My Links 

 Podcast: https://lifeselfmastery.com/itunes

 YouTube:  youtube.com/lifeselfmastery

 Twitter: https://twitter.com/rohitmal

 5-day email course: www.enterprisesalesexpertise.com