Welcome to The Private Equity Podcast! In this episode, Alex Rawlings has an insightful conversation with Maria Pacella, Managing Partner of Pender Ventures. Maria tells us about the critical mistakes made by investors in Private Equity and Venture Capital, the essence of investor discipline, and valuable learnings from her extensive experience in the investment world. Breakdown: [00:00] Introduction to the episode's theme on investor discipline and key mistakes made by investors. [00:51] Maria Pacella's introduction and background, detailing her journey from growing up on Vancouver Island to becoming a managing partner at Pender Ventures.[01:47] Maria discusses her career path from investment banking to venture capital, emphasizing her focus on technology businesses and her role in founding Pender Ventures. [02:45] Discussion on common mistakes by private equity firms and venture capitals, focusing on the lack of discipline in investment decisions. [03:41] Maria elaborates on how lack of discipline can impact fund and portfolio returns, including getting caught up in tech trends and issues with portfolio construction. [04:41] Insight into maintaining discipline in investment decisions, including starting with a strong investment thesis and framework. [05:40] The importance of a team with diverse backgrounds for challenging decisions and maintaining discipline. [06:34] Mistakes observed on the portfolio side, particularly poor capital allocation during the high fundraising period of 2020-2021. [07:23] The consequences of poor capital allocation, including high expectations for business growth and the current challenges faced by startups. [08:22] Mention of Grata partnership and its role in improving proprietary deal flow and data access. [09:22] Differences in investment evaluation between private equity and venture capital, focusing on unit economics and strategic multiples. [10:17] Maria shares insights on identifying revolutionary technologies and markets, and the importance of future-looking scenarios in investment decisions. [11:46] Attributes of successful portfolios, including founders' unfair knowledge and strategic capital allocation. [13:16] Maria reflects on her 23 years of investing experience, highlighting lessons learned and the importance of looking for outliers. [15:40] Discussion on humility, open-mindedness, and the necessity to challenge conventional patterns to find winning investments. [17:07] Maria talks about the discipline required in investment, different backgrounds of successful VCs, and the significance of understanding tech trends. [19:30] Attributes that make a good investor, including discipline, judgment of character, and humility. [21:53] Balancing involvement and support in portfolio companies, emphasizing the role of individual relationships and guidance. [24:15] Maria's influences and recommendations, including the Buffett Munger School of Investing and listening to various podcasts. [26:03] Closing remarks, thanking Maria for her insights, and a reminder to listeners to subscribe to the podcast. To connect with Maria Pacella, you can visit her LinkedIn page. Thank you for tuning in! To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here. Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to [email protected].