Inside an Elite Fund: How VCs Really Pick Winners

Abie J. Cohen is the founder and managing partner of Centre Street Partners, an NYC–based venture capital firm that’s backed dozens of startups with their latest fund. In this episode, Abie breaks down how venture capital really works, why he bets on people over ideas, and what thousands of startup pitches have taught him about success. __________ Check out Ezra Dweck on Momentum: https://youtu.be/C4dQ-pG2Mwg?si=1Zsufi3McyobDZEz Abie's medication recommendations: • Waking up by Sam Harris: https://www.wakingup.com • Trancendental Meditation: https://www.tm.org __________ SPONSORS: • Kosher Media: the #1 advertising network across Jewish communities worldwide. https://koshermedia.com • Life Vault Films: Capture the story of your loved one, forever. Order your film today by emailing [email protected] __________ ABOUT MOMENTUM: 🎙️ Momentum brings you the stories, advice, and wisdom of business visionaries, designed to inspire and guide you on your path to success. Be sure to subscribe on all platforms: YouTube: https://www.youtube.com/@TheMomentumPod Spotify: https://open.spotify.com/show/1jOPoArXfY3OU5uv4BpA3h?si=0311640b82154d1b Apple Podcasts: https://podcasts.apple.com/us/podcast/momentum/id1762657981 Instagram: http://instagram.com/momentumpodcast_ __________ GEAR (please use my affiliate links to make me rich!) • Cameras: https://amzn.to/3UuwW5o • Podcast Mics: https://amzn.to/3J5QWsv • Clip-on Mics: https://amzn.to/3H52iwo • Mic Stands: https://amzn.to/4kZj4uL • Lights: https://amzn.to/45lA5up • Tripods: https://amzn.to/4lHHQAI __________ (00:00) Coming up... (01:39) Introduction to Abie: investing in people (02:26) Investing In People Vs Companies (03:38) How do you feel out an individual? (04:37) Not classifying himself as an entrepreneur (05:25) Working at UBS for 13 years (06:28) Pursuing finance at NYU Stern (08:02) What Sales & Trading used to look like (10:11) Rotating through UBS's training program (12:33) Interesting learning experiences (14:17) Dating / getting married while working at UBS (16:42) Switching to wealth management (19:26) Building out his client list (20:35) What is a wealth manager's role? (22:53) Deciding whether to stay or leave UBS (25:04) Starting his own practice at UBS (26:12) The partnership structure Abie had with UBS (27:40) Running a solo operation at UBS (28:18) How COVID affected Abie's wealth management business (30:02) Working from his bedroom during COVID (31:16) Gravitating towards entrepreneurs/founders over high-net-worth individuals (33:33) Kosher Media (34:20) Conducting due diligence as an angel investor (36:53) Going all in on Centre Street Partners (38:04) Leaving UBS after 13 years (38:59) Working on his VC company from home (40:50) The depths Of VC funding (42:40) Removing emotions from deals (43:47) How many funds have you raised so far? (45:59) How did you raise tens of millions of dollars? (47:33) Timeline of fundraising, making investments, closing the fund, etc. (49:13) Can someone be retroactively part of an already existing fund? (52:23) Idea vs individual vs execution (54:09) Shifting from startups to cash cow businesses (54:56) A hybrid venture capital/private equity asset class (56:28) Starting an official company and finding a business partner (1:02:14) Life Vault Films (01:03:31) Making only 100 investments after hearing 5,000 pitches (01:04:48) The power dynamic between VCs and startups (01:07:48) Hard skills that every founder needs (01:09:33) Does college matter? (01:10:11) The Thiel Fellowship (01:12:25) The type of founders Abie invests in (01:13:28) Advice to reach Abie's position (01:15:32) Should people Follow Their Passion? (01:16:52) Finding fulfillment in being a mentor (01:20:35) Abie's secret weapon: meditation (01:24:05) Momentum Moment (01:25:27) Outro and 3 key takeaways