Jason Green of Emergence Capital on His Next Chapter

Navigating Leadership Transitions in Venture Capital

A significant challenge for many venture capital firms centers around succession planning. Investors, company founders, and even media representatives frequently develop strong relationships with senior team members. Consequently, when a key individual decides to step down, it can present complexities for the remaining partners.

Emergence’s Proactive Approach

Jason Green, co-founder of the enterprise-focused venture firm Emergence, indicates that his company has been actively addressing the issue of leadership transition for over a decade. Established in 2002 alongside Gordon Ritter and Brian Jacobs, Emergence prioritized recruiting younger investors capable of eventually leading the firm.

This foresight appears to be yielding positive results. Emergence recently announced the successful raising of $950 million across two new funds. This capital commitment occurred despite Green informing investors of his intention to pursue new opportunities. A discussion with Green regarding this decision, and strategies for smoother transitions, has been condensed for clarity.

Transitioning Roles, Not Departing

TC: Many of your colleagues are beginning to move away from their long-held venture roles, yet many remain involved. What prompted your decision?

JG: I wouldn’t characterize it as leaving, but rather a shift to a different capacity. I will continue to serve on eight boards and actively mentor. This was a planned evolution from the firm’s inception. Our goal was to establish a lasting organization, fostering growth from within, and ultimately allowing the founders to transition leadership to the next generation.

Gordon remains fully engaged, and the timing felt appropriate. The firm is thriving, and personally, after 30 years, I’ve accomplished a great deal – perhaps even exceeding my initial expectations – and I’m eager to contribute in new ways. [Note: Jacobs, the firm’s third co-founder, previously departed to establish the seed-stage fund Moai Capital.]

Future Endeavors and Philanthropic Focus

TC: What are your plans moving forward?

JG: I’ve launched a family foundation dedicated to philanthropic initiatives in areas such as climate change, criminal justice reform, addressing homelessness, and expanding educational access for underserved youth.

I’m also enthusiastic about becoming a Limited Partner (LP) in funds led by diverse managers. While our industry has made some progress in this area over the past 10-15 years, it’s insufficient. Supporting these teams is where I believe I can have a significant impact. Having founded and worked at multiple venture firms, I feel well-equipped to mentor emerging managers, perhaps even more so than entrepreneurs.

Learning from Established Leaders

TC: Is your transition modeled after anyone you admire?

JG: Russ Carson, who founded Welsh, Carson, Anderson & Stowe, has been a long-time mentor. He serves as a role model for my next career phase. He holds positions on the boards of The Rockefeller University and has supported charter schools, making a substantial community impact in New York.

I’m interested in supporting the Bay Area community, but also recognize the global scope of some of these issues. Stepping back from Emergence allows me the freedom to explore and learn, identifying areas where I can contribute and enjoy the process.

A Planned Transition

TC: Was there any competition with Gordon regarding who would step down first?

JG: [Laughs.] We are of similar ages. The difference is my 30 years in venture capital compared to Gordon’s 15, primarily with Emergence. He’s fully committed to remaining actively involved, while I’m ready to transition from actively seeking investments to nurturing existing ones.

Advice for Other Firms

TC: What advice would you offer other firms facing succession planning?

JG: We consistently hired individuals with the potential for long-term success, emphasizing collaboration. We fostered a culture where everyone’s success depended on supporting their colleagues. This created a shared sense of responsibility and achievement within the firm.

Many firms operate on an “eat-what-you-kill” basis, which I believe is counterproductive in venture capital. Luck plays a significant role, and identifying true successes within a fund can take a decade. Judging partners based on early deals is unreliable. We prioritize evaluating inputs rather than outputs, as outputs are inherently variable and uncertain, while inputs are controllable.

Looking Ahead

TC: What personal pursuits will you now have time for?

JG: Spending quality time with my children, who are juniors and seniors in high school, is a priority. I also want to focus on health and wellness, which often takes a backseat due to demanding schedules. Ultimately, I look forward to building memories with friends and enjoying a fulfilling next chapter. I anticipate remaining very busy.