TLDR: Do the job you want before you have the job, and stay consistent.
Recently published some thoughts on illiquid investing.
Response was good, so I’ll keep going.
Two paths this could take.
First, more thoughts on the asset class, my views on how the industry needs to change, and where and how to capture value.
The other one that came up is how to get into venture in the first first place.
Topic one could go on for years, so let me know if that’s the path you want.
But for today let’s go with the second one.
Getting a job in venture, or getting any job for that matter, usually happens when you’re doing the job you want before you have that job.
Take moving from individual contributor (IC) to leader for example.
Who are you going to hire to do that job?
Someone external who knows how to do the role, but doesn’t understand the culture or product, or someone who has developed those same skills, and already mastered their day job and found a way to take on the responsibilities of the people manager?
Lesser leaders will go for the external candidate because they don’t have the right internal option.
By comparison, stronger leaders will always be developing internal talent, fostering a culture where those with the highest performance and potential are continually invested in and given the opportunities to grow.
Not only is the downtime between leaders shortened, but the nuance with which those ‘new’ leaders understand the role, company, and opportunity for change is more deeply acted upon for to create velocity rather than speed. That’s not always true, specifically when a company is entering a new phase of its growth, but for the most part, that’s where I would lean in.
And velocity rather than speed is an important concept; velocity implies a vector, a direction. You don’t want speed alone, as it’s often the wrong direction.
When taking on a new job, or negotiating a salary for example, you should take stock of the value you bring, the velocity you can create, and demonstrate those strengths as a unique opportunity for the hiring manager.
In that context, as the IC, you can think about any role you want on three levels:
What is required to be #1 in your role?
What does the broader team need to succeed?
How can you impact the company, or even the world, from that position?
Dominating your core job is table stakes. No one is promoting you or investing in your career change, if you can’t demonstrate your ability to do what is required of the core role.
Understanding the team dynamics, and developing a perspective on where you can be different—after all “better than average” requires it—and how you can add value to that team will create opportunities to focus your impact.
And, if you can master those two, then how can you help create the value of a leader without having the title?
So, how does this work in venture?
Well, nothing is required to get started, other than your time, and this is true with most things.
Pick a space that you have a distinct advantage or specific knowledge in
Offer that support to venture funds where their investments can be directly impacted
Network with founders & VC’s
Document everyone you work with — Notes App and Google Sheets work for me
Maintain the network by regularly creating value for others — deal flow, introductions, etc
Track all metrics — valuations, stages, investors, current perspectives. That last one is important to see how your viewpoints age
Make investments to build a track record. You can self-accredit and put as little as $1,000 into a company via AngelList, or you can invest directly into companies of founders you find to be magical
Continue to track performance
Stay consistent on everything above
Deepen your knowledge, and repeat the steps with new specific knowledge as you learn
It really is that easy. What’s not easy is #9.
For me, I started in 2016 mentoring and advising on sales—my core competency at the time, the place I had earned my 10,000 hours.
I stacked 36 investments over the following 4 years.
Those investments sit at roughly 2.49x.
What’s harder to measure is how my VC and founder networks have grown from that effort. For every deal I did, I probably looked at around 50 deals and met just as many founders and investors for each one.
And while I didn’t get paid for it, when taken together, it’s a resume and it’s access.
Since switching careers, I’ve personally led 39 investments, made a series of LP commitments, and been part of more than 200 early-stage deals by virtue the funds where I’ve worked.
Those investments in total are performing materially better than the personal investments, and the network has become materially larger.
Remember #9 though.
It’s year 7, and while there have been a number of exits, very little of the overall gains are realized.
The lemons ripen faster than the diamonds, as they say.
The typical VC fund has a 10-year life, and the vast majority of my investments have been over just the last 2.5 years which means, even in year 7, we’re still just getting started.
Do the job you want before you have the job, regardless of the career, and stay consistent.
See you Monday.