February 04, 2025

EP135: How to Access Top Quartile Venture Capital Funds w/Mel Williams

29 minutes

In this episode of How I Invest, I have a conversation with Mel Williams, Co-Founder and General Partner at TrueBridge Capital Partners. We dive into TrueBridge’s pivotal role as Forbes' data partner for the prestigious Midas List, its strategic approach to venture capital fund-of-funds investing, and how the firm consistently identifies and backs the top-performing fund managers. Mel provides a masterclass on portfolio construction, risk management, and scaling a successful venture investment platform. Whether you’re an institutional investor, a fund manager, or simply intrigued by the inner workings of venture capital, this episode is packed with essential takeaways.

Highlights:

The Midas List Partnership: How TrueBridge collaborates with Forbes to curate the definitive VC ranking and what it means for the industry.

Fund of Funds Strategy: The five key investment strategies that shape TrueBridge’s unique venture approach—core venture, seed, direct, secondary, and blockchain investments.

The Power of Forced Ranking: A disciplined framework for ranking fund managers and how it enhances returns.

Gaining a Competitive Edge: How TrueBridge’s relationships with elite GPs provide them unparalleled access and insight.

Navigating Blockchain Volatility: TrueBridge’s philosophy on investing in blockchain and adjusting for its extreme market cycles.

Scaling Venture Funds Effectively: Best practices for fund managers to grow while maintaining their competitive advantage.

International vs. Domestic Venture Investing: How TrueBridge evaluates and ranks global venture funds against U.S.-based managers.

Lessons from Building TrueBridge: The realities of raising early funds and scaling a top-tier fund-of-funds platform.

Debunking the Fund-of-Funds Fee Myth: How TrueBridge offsets the double-fee structure through strategic overcommitment and capital recycling.

Guest Bio:

Mel Williams is the Co-Founder and General Partner at TrueBridge Capital Partners, a premier venture capital fund-of-funds specializing in backing top-tier venture firms and startups. With a background in institutional investing at the University of North Carolina Endowment and the Rockefeller Foundation, Mel brings unparalleled expertise in fund selection, portfolio construction, and venture capital strategy. Under his leadership, TrueBridge has cultivated one of the most coveted LP portfolios in the industry, leveraging deep networks and a research-driven investment approach.

Our Podcast now receives more than 200,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at [email protected].

#VentureCapital #VC #Startups #OpenLP #AssetManagement

Stay Connected:

Twitter:

David Weisburd: @dweisburd

LinkedIn:

David Weisburd: https://www.linkedin.com/in/dweisburd/

Mel Williams: https://www.linkedin.com/in/mel-williams-00584a5/

Links

TrueBridge Capital Partners: https://www.truebridgecapital.com/

Questions or topics you want us to discuss on How I Invest? Email us at [email protected].

(0:00) Episode preview

(4:38) Investing in blockchain and managing volatility in venture funds

(5:51) Building relationships and the forced ranking system in portfolio management

(10:21) Criteria for adding or removing venture fund managers

(14:43) Best practices for scaling and international venture investments

(20:23) Challenges in raising funds and the venture industry evolution (2012-2021)

(24:17) Comparing fund of funds to direct venture capital investments

(26:51) Efficiency and key aspects of TruBridge's fund of funds model

(29:05) Closing remarks

...more

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By David Weisburd

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