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The Power of Found Founds in Venture Capital | Taj Ahmad Eldridge, Include Ventures
In this episode, investment professional Taj Ahmad Eldridge reveals the need for a more informed approach to venture capital investing. He discusses the importance of diversity, both in terms of demographics and geography, in maximizing financial returns. He explores the role of fund of funds, which bridge the gap between large institutions and smaller venture funds, and shares insights into their structure and purpose. Taj sheds light on the importance of diversity in venture capital, going beyond gender and racial diversity and highlighting the significance of geographic diversity. He argues that investing in underserved and undervalued markets, especially those with lower living costs can yield higher financial returns for investors. By taking on the role of a limited partner in LP himself, Taj aims to address this issue and empower more founders to succeed.
Our conversation delves into the reasons and benefits of running a fund of funds that focuses on investing in underrepresented markets, including women and people of color. Fund of funds serve as conduits for larger institutions that cannot invest directly in smaller venture funds, which typically have an average size of $50 million. Furthermore, we explore the role of fund of funds as capital funds that invest in venture capital firms. Taj reveals that fund of funds typically receives a 1% management fee and a 7% carry, enabling them to share in the profits made by these venture capital firms. This approach ensures that fund managers choose effective strategies and invest in firms that can generate favorable returns.
If your company is looking to scale its AI initiatives, head over to Tesoro AI (www.tesoroai.com). We are experts in AI strategy, staff augmentation, and AI product development.
Founder Bio:
Taj Ahmad Eldridge is a 25+ year investment professional whose career has included high-level executive roles in banking, asset management, alternative investments, and entrepreneurship. Taj serves as Managing Director of Climate Innovations at JFF.
As General Partner of Include Venture Partners and former Senior Director of Investments at the Los Angeles Cleantech Incubator (LACI), Eldridge has built a longstanding career with expertise in the fields of fintech, media, energy, transportation, and the circular economy. He is also one of the 70 Black Investors in Bevy.com - a $325 million virtual conference platform as noted in AfroTech. At LACI, he established both the LACI Impact Fund I (LIF I) and the LACI Debt Fund to allow cleantech companies to grow with diverse capital. These funds utilize an equity impact lens to encourage invested companies to have environmental, economic, and social impact - particularly on increasing the number of underrepresented voices in the cleantech industry. In addition, Eldridge created programs such as LACI Investor Talks (LIT), the LACI Investor in Residence program, and the Player to CEO Athlete-Investor Impact Summit Series with JP Morgan Chase. He has been named one of the 53 Investors to Watch in 2021 by Pitchbook & 101 Black Titans in Tech while nurturing and building a team of investment activists.
Time Stamps:
03:00 Taj's background and professional journey
05:24 Venture risk capital and diversifying investment strategies
07:20 Fund of funds and geographic diversity in venture capital
10:47 Venture capital investment criteria with include ventures
15:49 Role of fund managers in artist funding and progress for emerging fund managers
18:37 Value of grants for underrepresented climate funds
21:60 A program to help minority underrepresented founders become venture investors
25:34 Key considerations for setting up a venture capital fund
27:21 Fund manager's secret sauce for success
30:14 Exploring diversity in venture capital
32:52 Staying in business and raising funds: tips for fund managers
35:00 Benefits of smaller fund sizes in venture capital
36:09 Evaluating fund managers and investment processes +
38:39 Fundraising strategies and climate initiatives +
40:33 Climate change: a public health, economic, and social justice issue
45:42 How to get in contact with the Include Ventures team
Resources:
Company website: https://www.includeventures.com/
Linkedin: https://www.linkedin.com/company/include-ventures
Twitter: https://twitter.com/IncludeVentures
View all episodes
By Darius Gant
5
5151 ratings
In this episode, investment professional Taj Ahmad Eldridge reveals the need for a more informed approach to venture capital investing. He discusses the importance of diversity, both in terms of demographics and geography, in maximizing financial returns. He explores the role of fund of funds, which bridge the gap between large institutions and smaller venture funds, and shares insights into their structure and purpose. Taj sheds light on the importance of diversity in venture capital, going beyond gender and racial diversity and highlighting the significance of geographic diversity. He argues that investing in underserved and undervalued markets, especially those with lower living costs can yield higher financial returns for investors. By taking on the role of a limited partner in LP himself, Taj aims to address this issue and empower more founders to succeed.
Our conversation delves into the reasons and benefits of running a fund of funds that focuses on investing in underrepresented markets, including women and people of color. Fund of funds serve as conduits for larger institutions that cannot invest directly in smaller venture funds, which typically have an average size of $50 million. Furthermore, we explore the role of fund of funds as capital funds that invest in venture capital firms. Taj reveals that fund of funds typically receives a 1% management fee and a 7% carry, enabling them to share in the profits made by these venture capital firms. This approach ensures that fund managers choose effective strategies and invest in firms that can generate favorable returns.
If your company is looking to scale its AI initiatives, head over to Tesoro AI (www.tesoroai.com). We are experts in AI strategy, staff augmentation, and AI product development.
Founder Bio:
Taj Ahmad Eldridge is a 25+ year investment professional whose career has included high-level executive roles in banking, asset management, alternative investments, and entrepreneurship. Taj serves as Managing Director of Climate Innovations at JFF.
As General Partner of Include Venture Partners and former Senior Director of Investments at the Los Angeles Cleantech Incubator (LACI), Eldridge has built a longstanding career with expertise in the fields of fintech, media, energy, transportation, and the circular economy. He is also one of the 70 Black Investors in Bevy.com - a $325 million virtual conference platform as noted in AfroTech. At LACI, he established both the LACI Impact Fund I (LIF I) and the LACI Debt Fund to allow cleantech companies to grow with diverse capital. These funds utilize an equity impact lens to encourage invested companies to have environmental, economic, and social impact - particularly on increasing the number of underrepresented voices in the cleantech industry. In addition, Eldridge created programs such as LACI Investor Talks (LIT), the LACI Investor in Residence program, and the Player to CEO Athlete-Investor Impact Summit Series with JP Morgan Chase. He has been named one of the 53 Investors to Watch in 2021 by Pitchbook & 101 Black Titans in Tech while nurturing and building a team of investment activists.
Time Stamps:
03:00 Taj's background and professional journey
05:24 Venture risk capital and diversifying investment strategies
07:20 Fund of funds and geographic diversity in venture capital
10:47 Venture capital investment criteria with include ventures
15:49 Role of fund managers in artist funding and progress for emerging fund managers
18:37 Value of grants for underrepresented climate funds
21:60 A program to help minority underrepresented founders become venture investors
25:34 Key considerations for setting up a venture capital fund
27:21 Fund manager's secret sauce for success
30:14 Exploring diversity in venture capital
32:52 Staying in business and raising funds: tips for fund managers
35:00 Benefits of smaller fund sizes in venture capital
36:09 Evaluating fund managers and investment processes +
38:39 Fundraising strategies and climate initiatives +
40:33 Climate change: a public health, economic, and social justice issue
45:42 How to get in contact with the Include Ventures team
Resources:
Company website: https://www.includeventures.com/
Linkedin: https://www.linkedin.com/company/include-ventures
Twitter: https://twitter.com/IncludeVentures