You can see the video here:
The chat is priceless and full of VC wisdom and I thought about summarizing some of the points that I found particularly interesting:
- A VC's most important role is that of a cheerleader (...). It is everything and just very few VCs can do it.
- The best time to invest in something is when nobody believes in it besides you (...). You have to totally believe in it and you have to know why.
- Entrepreneurs and the companies they build are the VCs' customers - not the VCs' investors, who are their shareholders. The entrepreneurs are the center of gravity in the business and VCs are service providers to entrepreneurs.
- Even though venture capital requires a sophisticated understanding of finance, technology, markets and strategy, it is ultimately a people business.
- Three things that USV looks at when investing in an entrepreneur: charisma (the ability to convince people...it goes beyond salesmanship), technical expertise (knowing how to make aomething, not outsourcing the making of sonething to somebody else but leading it), integrity (honesty).
- In order to have better chances to succeed, he recommends angel investors to build a portfolio as broad as possible - broader than that of a traditional VC - and build networks with other angel investors. He also points out that angel investors should help entrepreneurs get to the VCs to raise their series A and subsequent rounds.
- On how to getting into VC as a profession, as a general piece of advice, very graphically he recommends spending your 20s and 30s working at startups as a path to dedicating your 40s, 50s and 60s to being a venture capitalist. Ironically, he feels like the best VC investors did not take that path.
Until next time!