A mirror version of this for founders would help reduce a lot of panic. You hear conflicting advice everywhere. The reality is that VCs all differ and none of them have it figured out.
"This is what makes venture capital such a challenge for many people. They are used to following recipes, in the form of self-help books, podcasts or biographies. Their ability to think independently is often a distillation of other people’s ideas, because the insecurity associated with just being themselves is too uncomfortable."
I usually explain the same thing, that venture capital is highly uncomfortable for most of the people because it carries high uncertainty. Traditional businesses and other asset classes are more predictable, similar to Newtons mechanics. Your personal experience of the world goes hand in hand with the laws of how the objects behave, when you can see them, touch them, measure them without much issues.
Venture Capital, however, is Quantum mechanics of investing. The very measurement is disturbing the result, high uncertainty attached to the object of observation. All the conclusions are mind-bending and with high error.
To craft experiments and notice correlations around it you have to think beyond your 3D-regular speed-and-size POV .
Dealing with high uncertainty is not comfortable and I see plenty of GPs and LPs trying to see patterns and "rules" just in order to feel better , as if they know something. Once they do, IMHO, they loose the very thing they were trying to grasp.
A mirror version of this for founders would help reduce a lot of panic. You hear conflicting advice everywhere. The reality is that VCs all differ and none of them have it figured out.
This capture really well Cyan's investment philosophy!
If one wants to dig deeper into her serendipity, I encourage you to listen to this podcast with Patrick O'Shaughnassy: https://open.spotify.com/episode/7sz80hb9JYyaxQTAAsNK6c
"This is what makes venture capital such a challenge for many people. They are used to following recipes, in the form of self-help books, podcasts or biographies. Their ability to think independently is often a distillation of other people’s ideas, because the insecurity associated with just being themselves is too uncomfortable."
I usually explain the same thing, that venture capital is highly uncomfortable for most of the people because it carries high uncertainty. Traditional businesses and other asset classes are more predictable, similar to Newtons mechanics. Your personal experience of the world goes hand in hand with the laws of how the objects behave, when you can see them, touch them, measure them without much issues.
Venture Capital, however, is Quantum mechanics of investing. The very measurement is disturbing the result, high uncertainty attached to the object of observation. All the conclusions are mind-bending and with high error.
To craft experiments and notice correlations around it you have to think beyond your 3D-regular speed-and-size POV .
Dealing with high uncertainty is not comfortable and I see plenty of GPs and LPs trying to see patterns and "rules" just in order to feel better , as if they know something. Once they do, IMHO, they loose the very thing they were trying to grasp.
Very well said. I might borrow that quantum mechanics analogy in future!