The Way of the VC 风险投资之道

How to Be a Venture Capitalist

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Venture capital plays a significant role in launching the technologies that continue to redefine our work and life. Alongside the innovators who dream up the ideas, VCs contribute the tactical brainpower that fuels Silicon Valley.

However, the demand for VC jobs outnumber the supply of VC jobs. If an aspiring VC waits until a VC spot actually opens up to position oneself, it is likely to be too late.

Instructions

Difficulty: Moderate

Things You'll Need:

• Enthusiasm
• Drive

Step1

Understand the math. As a non-partner, an associate/analyst joining a VC firm under a LP/GP structure is fundamentally a cost center.

For example, a $100mn fund operating on a 2% management fee and 20% carry, would incur about $2mn for its fund management partners. If the fund hires 5 associates to source and close deals, paying them on average $5000 per month, it incurs $300000 per annum on expenses.

Step2

Market the skills which matter. Demonstrate the "Smell". Finding a good CEO running a startup is hard. Even harder is to find someone who understand product management and marketing, who can listen to customers and can synthesize exactly what the startup has to do and how you position your product. Cultivate A-player CEOs and hone the skill of listening.

Step3

Teach. It is easier to have a clearer understanding of the mechanics of venture capital when you attempt to teach it to someone else, which requires you have an in-depth knowledge of the subject. Offering to teach at your local university or chamber of commerce is a valuable spurt to personal growth. Teaching startups is a sobering experience and will remind you that not everyone understands the virtue of strategies such as RSS. Teaching also allows the teacher to build networks in the entrepreneurial community, which is critical to startup success.