3 Burst results for "University Endowments Foundations"
"university endowments foundations" Discussed on Finding Mastery: Conversations with Michael Gervais
"Edition of the finding mastery. Podcast in it's presented without interruption by Microsoft so Microsoft has radically transformed under the CEO Saatchi and Adela and with his emphasis on building a culture around mindset inclusion and diversity and the mission to empower every person in every organization on the planet to achieve more. It's radical what they've done I mean radical and this organization. I've had an upfront view of them. For the last handful of years with compete to create their organization that truly cares about people and psychological skills that they need to flourish and I couldn't be more excited to partner with Microsoft in bringing this series to life K. so decoding disruptors. What we're doing here is. We're taking a deep dive into the minds of extraordinary women who have disrupted the narrative in their businesses their industries their communities and it starts with how they disrupt the narrative within and I had the chance to interview nine amazing women for the series the conversations were filmed and they're available at decoding disruptors dot com. We've organized the clips so that you can jump straight to the mindset skills that you're most interested in like clips from the nine women on confidence and purpose and mindfulness and I just love how this project pulled together. The finding Masri approach to celebrate understand the genius of these women how eloquently it fits with Microsoft's culture in their mission and how compete to create is able to distill the mindset principles. And then we've also showed you how to put them into action so that you can train them. I just. I love the spirit of this project. So this conversation is with Theresa Gal. A founder and partner at accrue capital and one of the most successful venture capitalists in the world during her career Teresi has helped finance and supports the most successful companies of our time being an early in facebook. How about it hotel tonight and impervious among others and Time magazine named her one of the forty most influential minds in Tak equally impressive is that Theresa helped break the gender barrier in Silicone Valley. She was often the only woman in the room when she arrived. In America's tech capital and her focus on the elements. She could control like preparation hard work in her ability to gracefully reframe situations. Were some of the keys to shifting the gender narrative inside the industry and with that. Let's jump right into this decoding disruptors episode with Theresa Gayle. Theresa how are you? It's great to be here. Thanks for having me. I'm excited for this. I'm really excited to understand how you have shaped the narrative of Silicon Valley and so before we get into the psychology of how you've done that. Can you give context? And some understanding of how venture capital works in our world. Sure so venture. Capital is as the name sounds. It's it is investing by but it's also really being I think the business growth and business development partner for founders for entrepreneurs so in the tech space specifically where I focus is at the very very first investor so what we call the series and it's interesting because actually in this room that were sitting in right now which happens to be my office currently For my venture fund. But this was the room where myself and a couple of my partners walked down the street to give Mark Zuckerberg his series a term sheet. So maybe that's a perfect example of what is venture capitalists facebook. A company. Probably people have heard before but by the way Ongoing to how it's also relevant to the broader economy so we invest in entrepreneurs who are looking for both capital and board members to help them grow and shaped their companies at the very earliest stages. Hopefully some of the ones that are very successful like Microsoft and facebook and Google becoming large public companies And that's essentially what we do and we stay on their boards for five ten however many years until they get to that point where they become public companies. Okay so there's a ambitious part about making money that's part of the business world and you've also got something to really set you apart from many VC funds and so can you walk through your unique position in the VC world. So for me it's I I hope and I think it's Making money for investors of course is the goal because we take money from university endowments foundations and invest in these companies with the promise to give them a return. So of course that's important but for me. The reason to do it and I think for all great entrepreneurs is because we want to help them build something that we think is going to make impact in the world Obviously Microsoft actually the five largest companies in the United States all received early stage venture capital backing so even though we invest a small amount of money compared to other parts of the economy the impact to the to the US and global economies really large and for me and the crew And my partners at a crew fund the other angle of it. That's really important. Is You know we ourselves are very diverse team something that isn't necessarily commonly found in Silicon Valley and by diverse. I mean along a bunch of different dimensions obviously gender ethnicity but also other our work experiences the experiences that we've had as a result we while we have no specific diversity mandate in our investments. It turns out that almost half of our founders unlike most venture capital in Silicon Valley backed companies are diverse founders That compares to about four percent of venture capital dollars going to women founded companies and maybe about An unfortunate less than that in terms of other underrepresented groups forty five versus four five. We think we're doing pretty good. That and that is your position that we want to help that segment. We want to back the best founders. Doing big ideas whether it's in my day job which is in technology or impersonal investing whether that's an education or athletics philanthropy So that we don't have a diversity mandate per se because we think the best entrepreneurs are the best entrepreneurs and they wanna get money because they're the best at what they do It happens to be that we have a much more diverse set of founders that we invest in and we think that's just a reflection of who we are because my founding team had a crew is a very diverse And that'S A it's a. It's a great expression we also think it's a competitive advantage for us right so it can't possibly be that own if we'd just use gender as an example because that's easier to track that four percent of the best entrepreneurs in the world are female as a data person. I'd find that typically hard to accept as a truth and so it turns out that our our diversity as a founding team at a crew leads us to a more diverse set of people that we encounter and great entrepreneurs that we think are probably Being overlooked by by the rest of the venture capital community. Okay so take me back now. Let's get into the psychology and unique experiences. That you've had and how you've navigated those experiences to put you in the position. Now to impact the world and also impact people that are Have unique perspective and diversity to do that towards that aim. Your parents were Chinese. You were raised in Indonesia and you came to America at an early age. Can you walk through how that was for you? And what you've learned from those experiences so Yeah my my family's ethnically Chinese and I was born in. Nizhny came to the United States when I was very young. Grew up mostly in a small town outside of Buffalo New York population two thousand very different than Silicon Valley. And so I think that what that shaped for me is a few things so one is. I'm pretty used to being the only person in the room who is different from a lot of other people so I grew up in a small farming town. We were the only Asian family for miles around So used to being the only person in the schoolroom In the community that visibly look different so we were immigrants and was pretty clear that we were immigrants or at least very clear that we weren't from from that small town Interrupt that like for you if you go back to. What age are we talking about? So he came to the states when I was three or four and we moved to the small town when I was in first grade. I remember that very specifically because Before that we my dad was Came to the states he was. My Dad was a dentist in Indonesia. My mom was a nurse when we first came here like many immigrants. They had to start over. My Dad. I worked as a dishwasher in a Chinese restaurant and my mom was a hostess in Chinese restaurant Until he could get accepted to graduate school in the United States to get recertified as dentist So when we did that we were living in a university town. We were living in Buffalo but very close to the State University of New York Buffalo which is the largest campus there so was much more diverse population but when we moved to the small town after my dad earned his degree. And you know he he'd always aspired to be. He grew up himself in a small town Indonesia and he always wanted to be sort of like you know the town dentists where he could no all of his patients so moving. There was quite different. How did you manage that pivot? Because as a young girl you saw a professional parent professional parents they had white collar jobs or whatever that saying is and then you saw them say okay. We're coming to a new country to a new way and we're going to do something that there were more skilled yet you know. They had other skills that were more skilled. So what did you learn from that experience? So when I learned from that experience was a few things. One is the incredible value of hard work And the willingness to do whatever it takes to achieve your dreams. I mean. I don't think my parents would have said this. Then now they know but like essentially I view my parents is the embodiment of the American Dream. And they sort of they. They did that because their dreams were for me and my younger sister to have the opportunity to be in the US. Where if we worked hard enough believed in education God creighton school than we could do and be whatever we wanted right because in particular a time when they When we it's obviously their decision when we left Indonesia you know The Chinese are ethnic minority in Indonesia during times of political people late sixties whereas a major regime change often times. The minority is heavily persecuted. And so they kind of grew up in an environment where you know. They knew while they had great educations in white collar jobs. They saw how how quickly things can turn if you were in place that was not as politically welcoming and open to others as the United States was so that was why they were like. We're getting there if we have to restart over again..
"university endowments foundations" Discussed on Acquired
"I don't actually want to run this thing day today. I'm going to be the chairman and really help these guys but regardless with this in a perfect example of Don's company building at work and management team at recruiting on the back of this apple raises their first venture capital round of just over over half a million dollars interestingly the lion's share the capital comes not from sequoia but from Vin rock which does a little over two hundred fifty thousand dollars Donskoy. Let's go to one hundred and fifty thousand dollars. Arthur rock does the balance so apple is off to the races and they really you know as we've chronicled many times and will continue to chronicle in the future really invent the personal computer usher that wave of technology in two years later though this is this is the David side there comes. This is just so painful so painful and clearly has left its mark on on sequoia two years later. I couldn't find all of the circumstances around this but to the best of my understanding so the first Sequoia Fund did not have only tax exempt nonprofit. LP's in it it also had I believe feeding individuals and maybe corporations and Dot Salomon Brothers better there folks like and certainly capital group as a result of that those folks needed to pay taxes and apparently some of these LP's or encouraging aging don to make distribution of some of the gains in the fund so that they could pay their taxes on the gains and so apple had grown quite quite a lot. It's now nineteen seventy-nine and Dan before the IPO cells sequoia steak which they had invested one hundred fifty thousand dollars for six million dollars A to make this tax distribution to LP's. Now that's an enormous returns phenomenal phenomenal return but oh my goodness six million dollars compared to what apple you know would shortly become and then ultimately in the long term of course become and it's this lesson that drives Sequoia Sequoia in subsequent funds to take to take their capital only from nonprofit tax exempt sources which becomes really not certainly the norm across the industry but a goal in the lion's share of money that moves into venture capital is ends up. Being University Endowments Foundations folks that are Super Longterm impatient and aren't going to force BBC's to make this terrible decisions like this yeah another you can sort of check me on this. David it but my understanding is sequoia more so than your average venture firm all holds the stock in companies longer after they go public and and often sticks with the companies for very long time I think probably also inspired by this lesson this and and others that we're going to that we're. GonNa talk about here. in Short Order Order you know we're going to talk about the playbook in a little bit but one of the key lessons that they learned is like when things are going well go along you know like value creation creation in these companies that are building and creating enormous markets takes a long long long time. I mean just look at you know AIRBNB. Look look at Google. Look at it. Look at Apple. You can still be getting enormous. Enormous value creation a decade plus after these companies are founded regardless of whether they're private a bitter public yep so it's fascinating to think about you know the first couple of investments. I two out of a handful of investments being apple and Atari in total you returned a profit of about ten million dollars or a Max of ten million dollars is wild to think that that is the sum total of of of sequoias return on those two companies. I know I know but at the time I mean like even you know pulling it into context today lake if we within the two to three years of starting wave if we could be sitting onto X. cash distributed like I would feel great about that you know but the lesson here is like that's not the game where the business business were in or the game. We're playing the game. We're playing is like ten x plus cash distributed and to do that. You really need to be in it for the long haul especially when you're investing early yeah the other thing to know here and David as you as you foreshadow and you've been smiling a little bit we will get into this much more later this season but with Atari sorry the Atari boom that we all sort of know of in the eighties was after it had sold to Warner and so you know it's quite an even have an option in participating participating in that upside unless they were going to block the sale yeah yeah totally and that also leads to another part of this quad playbook which is like when things are going well really tryin. Brian convinced these companies to stay independent and not sell. I mean look at instagram rate. Selling instagram to facebook was a it was a terrible terrible mistake by the founders and the investors even though you know it netted them great returns at the moment and was interesting. Sequeira ended up investing right before before that deal happen that is a debatable topic but we can. You think that's debate. I think if it had gone a lot longer than facebook would have had to pay a lot more more like in the dozens of billions of dollars to acquire purely because there is a very very high user count social network that is a threat to them however do I think that instagram would develop the business that they have today that is billions of dollars of revenue flowing through them by advertisers. Maybe but that's not a sure thing thing I mean that's all because facebook had had done funneling all their existing advertiser there. I think that's true and certainly the helped accelerate it grow it more quickly me but at a minimum instagram should've waited you no longer in an had what's ask acquisition their bare minimum you ah it's so hard to it's easy to armchair quarterback this now and aren't to be sitting in the seat of Kevin Mike when they have a billion dollar offer in front of them uh but this is the value I mean sequoias learn these lessons over so many decades and seeing it time and time again so the other lesson that they take from apple is what Donald Square call an an aircraft carrier approach that they start taking to these big markets they realized on realizes that apple has created this pc market and it's not just going. GonNa be Apple. That's going to succeed in the PC market. They're going to usher in all of these other enabling companies that you need around the PC so like apple is the the aircraft carrier but you need all the destroyers and the you know the ship surrounded and like all the planes on the ships and all that stuff so they start financing component companies companies around the PC industry apple and Don helped start a company called Tandon Corporation. That makes describes they are. I investors in ten and Tannin goes public public after a couple of years really market cap of over one and a half billion dollars..
"university endowments foundations" Discussed on Money For the Rest of Us
"But he used four point eight percent in for stocks the average return for the different stock acid classes he used us smallcap international was nine point eight percent now that's possible but not likely given valuations so i redid my analysis that showed ninety eight percent chance of success and i used not historical returns but expect to returns 5 percent for us stocks six point two percent for nine us stocks three and a half percent for bonte assuming an active bond managers in some noninvestment grade bonds chance of success he spent four percent in the first year retirement on a fifty eight percent success probability's of success in thirty years forty two percent in 35 years using reasonable assumptions they use it three and a half percent rule was a seventy seven percent chance of success for thirty years and thirty 62 two percent for thirty five years tammie discouraging when you do that analysis such a low probability sixty seventy percent chance but that's what the numbers are i found that same level discourage meant when i worked with endowments university endowments foundations we would do an analysis we would do monte carlo analysis and we would show if you use your current spend rate of four and a half 5 percent and we assume something reasonable for inflation in that early analysis i assure at the are used to and a half percent inflation so let's say and endowment spent five percent and we assume two and a half percent inflation i met their target return was seven and a half percent in i'd run that analysis and it was show that a 60 percent chance of achieving discouraging.