Look up the term “smart money” in the dictionary and it’s likely that you’ll find an entry for Union Square Ventures (USV), one of the most notable and successful early stage Internet focused venture capital firms in the marketplace. The firm famous for its prescient investments in Web upstarts such as Twitter, Boxee, Zynga, Etsy and Foursquare has been raising the bar for VCs everywhere over the past few years and shows no sign of slowing.

So what exactly is USV’s “secret sauce” and how does it determine what the next big thing on the Internet worth investing in will be? That’s exactly what our very own Simon Bond asked Union Square Managing Partner Albert Wenger during his recent visit to the Digital Lab.

In addition to sharing a little bit on USV’s investing philosophy, Albert also discussed the transformative aspects of the Web on brands in all industries as well as the implications of native web business models into the future.

It goes without saying that Albert (along with his USV partners Fred Wilson and Brad Burnham) have this Web thing down to a science. We’re just thankful he was willing to share a little bit of his wealth (of knowledge) with us on Digital Lab TV. Have a look.