The Challenge of the VC Life

The Challenge of the VC Life

May 22, 2020 by investor

Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

Many people want to work for a VC, especially those straight out of college.

Most are not aware of the challenging dynamics that come with the VC life.  Here are a few:

Raising funding — just like startups, the VC has to raise funds too. LPs tend to be rear-view-mirror oriented and not focused on the cutting edge of new technologies and markets.

Working with partners — you rarely make the decisions alone, but rather with the other partners. Ego and other agendas are often at play.

Getting deals done — you have to convince others you have a winner on deck and sell it all the way through the process.

Managing the deal flow — untold numbers of startups want to talk with you and only a small fraction are even meeting your funds’ criteria.

Dealing with Co-investors — it’s rare for a fund to take the entire round. There are usually other investors in the deal. Who gets how much of the deal and what board seats, are often an issue.

The rollercoaster ride that is the startup life — things often don’t go well at the portfolio companies and this weighs heavily on the VCs who invested in them.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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NOTE: Investor Connect is a program under the Texas Open Angel Network which is a 501(c3) non-profit dedicated to the education around startup funding. Hall Martin is the principal contact, and may be reached at http://www.investorconnect.org/contact.
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Disclaimer:
Hall T. Martin is the Director of Investor Connect which is 501c3 non-profit dedicated to the education of investors for early stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

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