SUMMARY
Venture capital isn't a job; it's a lifestyle, a commitment that extends beyond the confines of a 9 to 5 routine
It's an exploration of the 30 to 40-year journey, in which you commit to a path that will challenge, test, and reward you in ways you can't even begin to imagine
Venture capitalism isn't for the faint-hearted. It requires a mindset shift from a career to a lifestyle. Are you ready to take the leap?
Venture capital isn’t a job; it’s a lifestyle, a commitment that extends beyond the confines of a 9 to 5 routine. It’s an exploration of the 30 to 40-year journey, in which you commit to a path that will challenge, test, and reward you in ways you can’t even begin to imagine.
This week alone, I’ve found myself in two distinct discussions with bright individuals aspiring to delve into the world of venture capitalism. I had to stress that the path to becoming a venture capitalist is a personal, life-long journey, not merely a career transition.
The Road Travelled: From Idea To Execution
Before we proceed, let me take you through my journey. It was a winding road that took me six years of work experience, nine years as an entrepreneur and eight years of investing and team-building before I reached the starting point of my dream — launching a fund. However, the milestone of raising a fund of 225 Cr required an additional two and a half years and 18 successful exits.
The path was far from easy. The journey was strenuous, laden with obstacles and naysayers at every turn. But, as I look back, the hurdles, the struggle and the grit, it was undoubtedly worth it. Every step taken and every decision made led me closer to my goal.
The Real Role Of A VC: Finding Gaps And Filling Them
Contrary to popular belief, the essence of being a venture capitalist isn’t just about hunting for the best deals or riding the wave of the next big startup. It’s about keen observation, identifying gaps in the investment ecosystem and crafting an investment thesis that uniquely addresses these gaps.
During my journey, I learned that the path to success was not about conforming to established notions or changing my thesis to suit someone else’s worldview. The individuals who backed my fund in its infancy, be it investors or team members, inspired confidence in my vision and solidified my resolve to stay true to my beliefs.
Investment Thesis: A Guiding Light Through Challenges
The development and defence of your investment thesis are critical to your success in the VC space. An investor will overlook market-related situations that result in lost funds, but they are less forgiving if you lose money because your thesis wasn’t adequately tested or if you abandoned your thesis mid-way.
An excellent case in point is the story of Michael Burry, who stuck to his thesis even when his investors lost faith. That’s the kind of grit you need when managing other people’s capital. That level of tenacity is the cornerstone of venture capitalism.
Building And Nurturing A Team: A Foundation Of Success
Venture capital isn’t a solitary journey. It requires a solid team around you that will help raise, invest, report, manage and exit this capital. The speed of your growth is directly proportionate to the trust and chemistry you share with your team.
I learned very early on that non-solicitation or non-hiring clauses would prevent me from drawing from my existing resources. I had to build and nurture a team from scratch. This experience allowed me to create a dynamic and collaborative environment crucial for success in this field.
Conclusion: A Marathon, Not a Sprint
In the end, when you decide to venture into the VC space, it’s important to remember that it’s not a three-year sprint but a 40-year marathon. It’s a rollercoaster ride that will test your mettle at every curve. However, once you’re on it, you need to stay on, come rain or shine.
Venture capital is not just a career.
It is a lifestyle, a personal journey filled with trials and triumphs, failures and successes. It demands more than just your time — it demands your commitment, your conviction and above all, your unwavering faith in your vision.
Venture capitalism isn’t for the faint-hearted. It requires a mindset shift from a career to a lifestyle. Are you ready to take the leap?
