18 Months in VC
I’m 18 months into my career in VC and my biggest takeaway is that I’ve outlived the median time between fundraising rounds for startups raising capital.
Seems like a silly thing to have top of mind, but this is a perfect reflection of how quickly things move in the industry. 18 months is more than enough time to have seen countless fundraises, company successes and failures, and even the rise of a significant hype trend (the AI/LLM boom in my case).
It’s also enough time to generate quite a few opinions and observations about the space and how it works. Let me share my personal top 9:
1. Be a contrarian, not a signal chaser
In an industry where it takes 10+ years for returns to be realized, very few funds can actually say they have the “right” investing strategy and have the record to show for this. The last three years alone have shown how drastically the market can change and lead to the rapid rise and fall of many funds and startups. But even in those conditions, countless funds of different strategies and approaches have lived on and even gone on to thrive. The rise of venture capital alone is the best proof there is that being a contrarian can open up doors that didn’t exist before.
2. The job is a people job (especially at the early stages)
While venture often gets categorized into the finance realm, the core of the job is very limited in finance scope. At the early stages, companies have very little product and traction to analyze. And even though they all have solid visions of their business model, pricing, and growth trajectory when you invest, so much changes over the course of their path to scale up that it’s impossible to build conviction solely on the idea. What you’re really investing in at the end of the day are the people who will navigate the obstacles to bring the vision to life (i.e. the founders). That’s why the core of the job at the early stages is about reading people and fostering relationships that will allow you to find the real change-makers.
3. If you’re doing the job right, it isn’t emotionally easy
Everyone sees the glitz and the glam of our jobs on LinkedIn, but nobody sees the emotional rollercoaster behind the scenes. The nature of diving deeper into companies is getting close to people who care so deeply about what they are building and have dedicated their lives to fixing a problem. On a human level, you always want these people to succeed. But this means that every logical decision to pass is not emotionally easy for us as investors. Nobody wants to be the dream crusher.
4. Your background and experiences shape who you are as an investor
Everyone reaches conviction differently, there is no standardized template. How you conduct your analysis, what you prioritize in a business, or even what industries you care about all depend on your background and how your mind has been molded. That’s why having relevant experiences is so sought after in the industry.
As an example, working so closely with drivers who were being incentivized to rent an EV during my time at Uber is exactly the reason why I am more excited by the future of charging infrastructure than I am about the adoption of EVs in general.
5. Having a strong and collaborative team dynamic is mission critical
In a space where your job is to find the next big deal, there’s a lot of repetition and inefficiency. I’ve found that more collaborative teams reach the higher efficiency as a fund by ensuring comprehensive market coverage and by sending a really strong message to the market about their brand and thesis.
Collaborative team dynamics are really beneficial for those looking to break into VC as well. Working with a close team and being able to knowledge pool (whether it be through formal training, learning & development opportunities, or through collaborating on deals) is the fastest and most comprehensive way to truly learn how the business of venture works.
6. You need to have the curiosity itch to do the job well
Being curious is definitely a prerequisite to being an investor. We spend our full days completely dialled in (whether it be with founders, other investors, or conducting research) and context switching every 30 minutes or so. This continuous go go go nature of job means that it can be exhausting for the wrong people and invigorating for the right ones.
7. Grounded confidence will always win
Boiling it all down, the root of investing is either challenging others or being challenged about your own conviction. In an industry that is inherently skeptical, you’ll only make strides and break through the glass if you can stick to your gut and can justify your thesis. Confidence is absolutely everything, especially when there’s no right answer.
8. Passion isn’t just a prerequisite for founders, investors need to have it too
Everyone speaks about the passion that a founder needs to have to build a billion dollar business, but the passion that an investor needs to have is understated. Because we aren’t the ones physically building the company up, investors need to have another level of motivation and determination to go deep into industries and topics we aren’t necessarily experts in to fully bottom out all of the edges. Passion for advancing tech and society is what drives us to go out and find the companies that will shape our future.
9. And finally, believing in your fund thesis is so important to grow as an investor
Personally, I am a classic overthinker. I don’t like to jump into anything until I’ve considered all of the scenarios. Playfair’s thesis of going deep and building high conviction resonates with my personality and style. Never underestimate the importance of being somewhere where you are growing into the kind of investor that fits with who you are at your core.
