Why 2022 was the best (and maybe worst year) to have joined venture capital — A reflection on my first year.
A little over 11 months ago, I started my career in venture capital with Unshackled Ventures. Coming from the consulting and incubator world, I was incredibly excited about the opportunity to work with founders on a granular level in the earliest days. Over the past year, I’ve reviewed close to 3,000 pitch decks, spoken to hundreds of founders from around the world, have been a part of 7 investments, and have led 3 alongside partnership. I’ve also had the honor of working with our portfolio founders (admittedly one of my favorite parts of the job) and have seen first-hand the level of grit and adaptability these founders have shown, especially this year.
Like many of us, I’ve had a front-row view of some of the most challenging moments this industry has faced in years. I’ve come into venture at a time of high uncertainty — with an economy teetering on the brink of recession, LPs and investors deploying less capital, overvalued startups, industry scandals, mass layoffs, and a fair amount of pessimism. The reality is, the last recession I personally experienced was in 2008 — I was 10 years old. Now, at 25, I sit in a position many are willingly or forcefully stepping away from. I think it’s fair to say that my first year in venture has painted a clear image of the highs and lows of what it means to bear the responsibility of being an investor. An industry that has often been glamorized, has now come under the magnifying glass.
And while this year has been a painful reality check for many veterans in the industry, I believe now is equally as important of a time for those of us new to venture to take a step back and reflect on why we are here, why we want to be investors, and how we can do better collectively. It certainly won’t be easy, this job is humbling, and in this market things will likely get worse before they get better. But while I believe maintaining a degree of healthy skepticism is important, my initial read after a year in venture, is that the best long-term investors AND founders are almost always optimist.
Through this difficult reset there has also been immense opportunity. 2022 has been the year where resilient founders, with their backs against the wall, have responded to change with both optimism and realism. The best investors have shown the importance of viewing founders as humans first and founders second. I’ve seen the impact of community, and how people coming together has allowed laid-off workers to find new jobs or take the leap to start their own companies. There’s been a wave of diverse investors and emerging managers bringing new and much-needed perspectives, and incredible businesses continue to be built and funded. Amidst it all, I continue to believe that now is an incredible time to be an investor, especially at pre-seed. Investing in people, their talent, and their visions for the future is what Unshackled does best.
My ‘why’ from the beginning has always been clear — I want to be in VC to be that long-term supporter in founders that are going to drive impact and support the numerous communities that are close to my heart and central to my experience in this country. Here’s what I’m taking into 2023 as Associate at Unshackled in the hopes of continuing to stay true to that ‘why’.👇🏽
What I’m taking into to 2023:
Empathy always wins — How investors respond in times of uncertainty shows founders their true value.
Immigrant founders deal with a unique set of challenges, for many, the scarifies and hurdles faced often affect more than just themselves. The impact a simple “How are you really doing?” is incredibly underestimated and based on the responses I’ve heard from founders; it is also rare. I often hear, “Thank you for not only asking, but for giving me the space to respond honestly…I can’t always do that with investors”. These conversations are the stepping stones of a stronger investor/founder relationship, and are proof that empathy facilitates transparency and trust, which almost always leads to better business outcomes. Empathy is both a smart relationship and business decision.
I will continue to give myself the space to explore and learn, but I’m coming into 2023 with a better understanding of what excites me.
What’s great about being a generalist investor, is the constant learning and code-switching that happens throughout the day. I can go from a pitch discussing long-duration energy storage to one on consumer-facing social applications. Throughout my first year, I’ve gravitated towards companies that lead with some sense of mission orientation to drive impact — verticals such as Fintech, Edtech, and Healthtech. My experiences with portfolio companies in these spaces has only further fueled my excitement about the opportunities ahead. Aavia, a hormone health tracking app is showing what can be accomplished when you have GenZ and user data security at the forefront of your product development. Through investments like Bolsiyo, I’ve had the opportunity to understand SMB pain points in Latin America and how effective solutions can facilitate better processes from check-out to inventory and everything in between. Moving forward, I plan on spending more time learning these spaces and connecting with founders. My DMs are always open!
In times of uncertainty, community is everything.
Now, more than ever, it’s important to ensure that underrepresented founders and investors have access to the tools they need to succeed. Part of that, is demystifying this industry for those who have historically been left in the dark. I feel this on a person level, as my year in venture has shown the education gaps that exists for many first-time founders.
- For Founders: In February 2023 I will be hosting a panel to discuss “How to Raise Your First Round of Capital as a Latinx Founder” in Miami. The panel will consistent of early stage pre-seed & seed investors as well as founders who have gone through the raising journey themselves. More information and details to come!
- For Future Investors: Through my work with LatinxVC I’m eager to continue to meet, learn, and support new investors through the Breaking into VC fellowship. Applications for the fourth cohort will be available early next year!
Removing the hurdles in the immigrant entrepreneurial journey to allow more founders to build freely.
In January, I shared my excitement around the synergies I saw between who I am, where I come from, and Unshackled’s values and mission. Coming from an immigrant entrepreneurial family, I understand what it means to build from zero. Today, I feel inspired as I reflect on the support our team continues to provide — from visa and company incorporation support, all the way to helping founders acquire their first American drivers license. Unshackled sits in a truly unique position to support those brave enough to embark on the journey. As Associate, I’m looking forward to expanding that support to more of the immigrant community in this country, especially change making Latinx founders.
To the Unshackled team, thank you for sharing your perspectives with me over the past year and for being so receptive to mine. You all encouraged me to come in running, to absorb as much information and learnings as possible, and to forge my own unique path both at Unshackled and in the broader industry. I feel incredibly grateful to have learned and grown with you over the past 11 months and look forward to continuing our meaningful work ahead!
Founders, let’s connect! You can reach me via email: alexis@unshackledvc.com or connect via LinkedIn and Twitter :)
