The Smithsonian Institution’s Venture Capital Edge | E68

Mission-Driven Investments

The Smithsonian Institution's mission significantly influences its investment strategies, focusing on enhancing learning and education. Jeff Smith highlights the institution's role in combating apathy towards learning by exciting people about history, art, and science. This mission-driven approach is supported by a stable and experienced team, with members averaging 15 years of service, which enhances their investment capabilities 1.

Smithsonian is a great mission. We have 40 of the 50 top universities. Last I looked in the world right here in the United States. But there is a real problem with apathy towards learning, and the Smithsonian helps excite the learning in everyone.

--- Jeff Smith

Smith emphasizes the importance of capturing significant outliers in investments, which can dwarf other returns and make a substantial impact on their portfolio 1.

   

Stability & Longevity

The Smithsonian's institutional stability and team longevity are key assets in their investment strategy. Jeff Smith notes that the average tenure of their team members is around 15 years, which contributes to their collective learning and investment success. This stability allows the Smithsonian to maintain a consistent approach, leveraging their experience to navigate both winning and losing investments 1.

Our collective learnings really enhance our abilities. What would I like to have had 20 years ago when I started that I don't have now is the experience, the experience of both winning and losing.

--- Jeff Smith

Smith's insights underscore the value of a long-term perspective in achieving substantial investment outcomes 1.