E35: Ben Gallacher of Cannonball on ”Value per Dollar Invested” and How it Predicts Fund Performance

Ben Gallacher sits down with David Weisburd to discuss venture capital, his journey as an LP, and the challenges emerging managers face. They discuss check sizes, diligence processes, and the impact of a GP leaving during an investment life cycle. They also cover the role of CFO/COO in GP operations and the importance of supporting emerging managers. The 10X Capital Podcast is part of the Turpentine podcast network. Learn more: turpentine.co (0:00) Introduction and Ben Gallacher's perspective on venture capital (1:00) Journey and lessons from being an LP in the venture and emerging manager space (3:26) Spinouts in venture capital vs private equity and challenges for emerging managers (9:35) The dilemma of varying check sizes for LPs and decision-making process for follow-on funds (13:12) Ben Gallacher's diligence process and approach to founder questions (14:13) Sponsor: Bedav Insurance Group (17:11) Use of other LPs in the diligence process and building relationships (21:24) Choosing emerging managers, sources of alpha, and ideological lines in venture capital (27:14) Follow-on strategy, role of honesty and selectivity, and shifting reserve strategies (33:40) Fund size in venture capital, stewardship of capital, and the role of CFO/COO in GP operations (38:38) Impact of a GP leaving during an investment life cycle and value of GPs leaving to start a company (41:07) Closing remarks, supporting emerging managers, and introduction to Cannonball Capital (41:53) Introduction to the 10X Capital Podcast newsletter by Carriea Labs