Starting at the Top — One Year in Venture Capital
In November 2021 I joined Propel, an early stage venture fund focused on the new financial economy. Calling that time a top would be an understatement, as it marked the end of one of the greatest bull runs in modern history for technology. I joined with a year of biz ops experience at a high growth insurtech company. A year into my venture career, here are three takeaways to help others just starting in the field.
#1: Don’t get caught up in the hype
A record $128B was raised by venture capital funds in 2021. While the industry is growing rapidly, with new people and firms constantly entering the market, there’s a tendency of getting caught up in “the next big thing” — often changing month to month! Identify a space that excites you and your firm, and dive in to avoid the noise. Venture is often a mile wide and an inch deep. Find your swim lane and go beneath the surface. Specializing in crypto and learning to get less caught up in the latest narrative has helped me stay the course.
#2: Back to the basics!
Being new to the industry, it’s hard to fully understand how different venture capital was before 2021. Having seen the market’s evolution from the top until today, I see the importance of basic tenets — diligence processes, governance, portfolio construction, etc. Finding mentors who have lived through a more normalized time is critical. There’s a lot more to venture than what could be observed over the last two years.
#3: It’s all about the people
It may be cliche to default to this — but it really is all about the people. Find the people you want to work with — entrepreneurs, co-investors, service providers, your expert network, etc. Life is too short and relationships are long.
Investing requires constant learning. If you’re starting your career in venture in 2023 — let’s connect; I’m happy to be a resource!
Notes:
Elton Chang is an investor at Propel. Propel is an early stage venture fund investing in the new financial economy. For a full list of investments, please visit our portfolio page.
None of the above is investment, business, legal, or tax advice and none of the financial information that might be contained has been verified or officially endorsed by Propel. Full disclosures available here.
