#10 Reflections, 10+ Years (and also Looking Forward)

Welcome to the new members of @TheFundCFO crew that have joined in the last week! Thanks for your support and spreading the word! Every week, we’ll bring you actionable tools, real-world experiences, and insider insights for #VC fund managers, #LP investors, and general industry enthusiasts. #OpenLP

Share this on Twitter or LinkedIn to help grow the crew! Or check out our prior newsletters and insights here. We appreciate you!

Looking Forward: The Next Generation of VC

Earlier this week, I enjoyed sharing LP investor and CFO insights on multiple Zoom panel discussions with participation from more than 50+ VC fund managers who were raising funds ranging from <$10m to $100m+. It was fun!

I continue to be impressed by the next generation of VC emerging managers. The conversations we had on these panels were advanced and tactical, even more so than many of the conversations I had with established VCs in the early / mid 2010s. 

The next generation of VCs are embracing the opportunity to learn from more widely available information / resources, including blog posts, podcasts, VC incubators, established VCs, and many other mediums. Well done, keep it up!

We talked about VC funds building a “product” for their “customers.” A VC fund manager will interact with many different “customer” types as they fundraise (see our fundraising post for more detail) and hear the word “no” a lot. And that’s fine!

LP investors meet with hundreds of VC funds each year and there are thousands of VC funds out there (recent comments from @Beezer232, @cdouvos, @guyperelmeter, & @samirkaji here).

Each LP you speak with will have a different opinion on what’s important and most won’t invest - that’s ok! Take their (and my) feedback with a grain of salt and then keep going!

My biggest takeaway this week for VCs: when presenting to LP investors, be authentic and “not boring” while still “knowing your numbers and strategy in detail” (this also applies to LPs and CFOs :)).

In the world of Zoom where we all have hundreds of meetings a year, how do you stand out and be memorable? Some of my favorite ideas that I saw in action this week from credible VC fund managers:

• Funny quote from Ricky Bobby (Talladega Nights) in their pitch deck

• Silly story from childhood that tied directly to the VC investment thesis

• Sharing a spiky, non-consensus point of view that made me think “this person is a little crazy” at first!

These are a few examples that I will remember! I challenge each of you to add something that will make your next meeting more memorable and fun, while still being authentic. Be bold and go for it!

Looking Back: Reflections After 10+ Years

I’m lucky to have 10+ years of experience as a LP investor and CFO, working with some great VC fund managers. I’m also self-aware enough to know that there are many others that have even more amazing experiences and are sharing them every day via Twitter, blog posts, and other mediums.

One recent example I found compelling was a post from Rob Go, titled “10 Reflections After 10 Years of NextView." I first met Rob and his colleagues in 2010 as I was just getting started as a LP investor in VC funds.

I highly recommend reading the post in its entirety for any new VC investor. While you may not agree with all of it, there are a number of great nuggets and insights. Here are his 10 reflections, with my favorites bolded:

1. Change will always happen, should never be unexpected, and should be embraced

2. Patience is a virtue

3. There is a Goldilocks zone between too much dogma and lack of discipline

4. What matters is effective post-money at exit

5. Traction creates opportunity

6. Define markets properly

7. Founders and investors should make each other a little uncomfortable

8. Competition matters… or does it?

9. Fundraising is unpredictable. Don’t let it get you down.

10. It pays to be optimistic

That’s all for today folks! Thanks for your support and spreading the word! Share this on Twitter or LinkedIn to help grow “the crew!”