Role and mindset of a VC associate
I joined YJ Capital in January 2015.
Before joining a VC firm, I was working for the e-commerce business development team at Yahoo Japan. I loved online shopping and I was so glad that I was one of the members to be in charge of making attempts within the e-commerce sector at a company that has a big influence on Japanese internet users.
On the other hand, I also enjoyed my private time partying. I really worked hard and partied hard. When I look back now, it seems ridiculous but back then, in my early 20s, I had two identities existing in my life, resulting in having 2 Facebook accounts to separate my networks.
But after January 2015, my life has changed a lot. I have integrated my 2 Facebook accounts to 1. My party time has changed to networking events and drinks. My EDM musics have been converted to VC produced podcasts. I am now so fasciated by the venture world that I am sure that I will be dedicating the rest of my career to this world full of ambitious people aiming the next generation of technology.
After 2.5 years of experiencing a VC associate job, I sometimes have people asking me what I’m actually doing, reflecting the recent trend of many VC firms hiring associates in Japan. When I first joined YJ Capital, I read a lot of blogs written by VC associates in Silicon Valley. Although there were some regional differences, those were very useful to help me stand at the starting line.
Now that I have some experience to talk about, understanding that I’m also still in the phase of trials and errors, I believe it is my responsibility to give some of my first hand experiences back to the community. As said in Blake Robbins’s post, an investor at Ludlow Ventures;
Every VC Has A Story
[…].
It’s important to remember that, just like founders, every VC has their own story. Every single one of them has carved their own path.
there is no typical career for a VC. So I believe my little story can be a help for some small part of the people working as a VC associate. Btw, I won’t talk about “how to land a job at a VC firm” because I was transferred by my prior boss. Also I won’t talk about post VC associate stories because I am also still in the middle of my journey and I don’ want to limit myself to anything. This post is targeted to people who are currently working as an associate and who are curious of knowing what their neighbor is thinking about.
P.s Below are coming from my own thoughts and experiences and are not a generalization about what VC associates should be like. I understand these may not fit other associates and it is totally fine. At least the conversation can start from here.
Role of a VC associate
Networking
This is a must and I know all associates are doing this. What I’d like to emphasize here is that although VC partners tell you to meet as many entrepreneurs as you can, the number isn’t actually what they’re expecting for. They are expecting associates to cover the areas that they can’t reach due to their focus area or region or even their age. Also if there are several associates in the firm, don’t take the same action. Networking is most valued when a new aspect is added to the firm.
Delivering different perspective to the firm
Having an independent conviction is important when investing. However to get to that conviction, there are many internal discussions within the firm. For our firm’s case, we have 3 different meetings held during our due diligence process to talk about out insights on the market potential, business model and future projection. During these discussions, associates aren’t just observers. We are the ones to add fresh, young and spicy new perspectives. Don’t be a yes man/woman because that little difference you add to the conversation will help you earn respect from your partners in the long run.
Supporting partners to leverage their very limited time
Partners are always busy attending to board meetings, mentoring, speaking at events and hiring. I was surprised to know how much our partners had to allocate their time to things not directly related to new investments. Of course, there are many people desiring for their help so it is inevitable. Here comes our turn to support partners to leverage their skills and knowledge. Associates do need to work as their hands and feet to make the most out of the limited resources within the firm.
Mindset of a VC associate
Have a passion for what you’re doing
VC sounds so cool and fun!
I often hear this world while meeting with people who aren’t actually in the VC field. It is true. BUT there are times that we have to overcome hurdles. Experiencing big depression when dropping a deal that I worked very hard on, standing in front of the white board after an intense meeting thinking why I can’t persuade our team and feeling anxious that I’m not adding much value to the firm, I had times when I needed to keep up my motivation.
I wouldn’t be working at a VC firm until today if I didn’t have strong passion for technology. My love toward tech and the expectation of a big market change around technology within the next few years kept me stay where I am. Being a VC associate with no passion is just pain.
Be a specialist and not a generalist
You can never be better than your partner if you’re competing in the same game. Your partner has much more experiences. However if you become a specialist in a certain area, it is possible to have much deeper insights than people with long career. For young associates, it is essential to build a brand. In order to do so, having the mind of becoming a №1 in some area will help you a lot. If you don’t have actual operational experiences, it is effective to learn from someone who has them and start making you own expertise.
When doing so don’t forget to give something back to that person. Talking about own experiences is not a volunteer. That something can be anything so think what you can offer. I have been digging into the e-commerce and transaction business model for years now and I am pretty confident sharing market trends and analysis, all coming just from my past experiences and personal curiosity.
Don’t be arrogant
When I joined YJ Capital, a partner who is a serial entrepreneur told me,
Don’t forget that although you are in the position to give funds to startups, you’re not in a higher position than startups. VCs are able to do their business thanks to startups.
His words have been and will be at the center of my mind.
Persistently learn the basic
Although they are not fun, admin works do exit a lot. However at the beginning, these works help you understand the structure of the whole investment process and also areas not directly related to investment such as legal concerns, tax applications, etc. It is way faster to learn by experiencing it than to learn from a book.
******
I hope I can share some more details of what I’m actually doing since I believe the above points were rather high level contents. Also will post in Japanese sometime soon as well.
