How can you maintain focus when facing setbacks in Venture Capital?

EMOTIONS ARE OVERRATED. Feelings are just about the worst way to make decisions. Everything truly great in life is uphill and isn’t going to feel good all the time. If you signed up to do venture capital expecting it to be easy, you started from a terrible foundation. If you signed up for marriage to be easy, you started from a terrible foundation. Venture capital is only “easy” if you’re bad at it. The best venture capitalists will tell you it’s hard. A great paradox: The sooner I realized everything truly great in life would be exceedingly difficult and my emotions would constantly betray me, the easier life got. Ignore the hype about feeling good.

This has got nothing to do with VC. It about training your mind a certain way, its developing a habit. In the midst of all emotions, remember the big picture! I am not saying set aside your emotions. For me its rather about re-channeling my emotion into the passion I feel for what I do. So do that and make an informed decision. If it were easy, everyone would do it.

In the VC world, nos and setbacks are inevitable. Hearing no or facing obstacles like a failed pitch meeting or rejected term sheet can sting. However, don’t take it personally or dwell on the negatives. Understand rejections and roadblocks are just part of the process. Focus on lessons learned for future improvement. But quickly refocus energy on the next step, whether that’s meeting with another potential investor, adjusting your strategy, or iterating on your product. Essentially, acknowledge the nos as data points and feedback. But don’t let them distract from forward progress. Stay determined and persistent, not defeated. With the right mindset of learning from challenges, you’ll eventually convert more nos into yeses.

In a world where 1 out of 80 deals is a home run, you must acknowledge that the odds are not in your favour. To take this a step further, choose any other profession where your success rate is 1 out of 80, and you would be fired. Venture Capital is hard. Sourcing LPs, contract negotiations, misguided founders, egos... this is our world, and it is what we signed up for. If you are doing better than 1/80, Celebrate! Doing worse: Let's look under the hood and find out why. Look at all these setbacks as an opportunity to grow and don't take them personally.

This is super important. Venture Capital is not an easy ride specially when you are raising capital for the fund. In the last 3 weeks I received multiple NO’s and then finally someone replied that they are interested in a meeting :) I have accepted the fact that I will be hearing a bunch of NOs before I get a Yes and whenever I feel down, I remind myself of this statement.

Venture Capital is a portfolio business and a tenure business. Companies x time. Both teach you lessons ! Each company is a mix of sector, founders and strategies, execution. Analyse what worked and what failed along each of those axes Time, many don't realise, is a big creator and destroyer of value. Investing is done with an objective of a "vertical takeoff" in an industry where a specific need is big and once the solution is launched and executed well, consumer adoption will be very high with costs of acquisition decreasing rapidly over time. If this doesn't take place while execution was good, one invested too early or caught the trend too late

When facing setbacks, maintaining focus is crucial. Here are some strategies to help you: Embrace a Growth Mindset: Adopt a growth mindset and view setbacks as learning opportunities. Understand that failure is natural and use setbacks as a chance to reflect, adapt, and grow. Practice Resilience: Build resilience to bounce back from setbacks. Develop the ability to handle setbacks with grace, perseverance, and determination Review and Reflect: Take the time to review and analyze the setback. Identify the factors that contributed to the setback, assess your decision-making process, and evaluate any potential areas for improvement. Seek Feedback and Advice: Reach out to mentors to gain different perspectives and valuable insights.

Setbacks in life are like unexpected steps in a dance, not just stumbles. Here's how to make them work for you: Think of every setback as a chance to grow. It's like planting a seed in your mind that can sprout into wisdom and resilience. Build up your resilience like it's a shield. Every challenge you face can make you stronger and more capable of handling what comes next. Take a moment to reflect on each setback. There's always a lesson in there, something that can help you do better next time. Don't hesitate to ask for advice. People who have been in your shoes before can offer valuable insights that light up your path. If you embrace these ideas, you'll start seeing setbacks as steps forward, building a stronger, wiser you.

Learning from your mistakes, and really overall pattern recognition is one of the most important parts of helping to build and form new companies. The only way to really understand what can go wrong is to see it and learn to recognize it before it happens. Mistakes are a natural part of this industry, even more than some others, and being able to look past it is crucial to success. Bonus points for being able to actually use failure in productive and constructive ways going forward.

It is often said that it is better to learn from the mistakes of others than to make those mistakes ourselves. By seeking feedback and analyzing the experiences of others who have faced similar setbacks, we can gain valuable insights and avoid repeating the same errors. Learning from the experiences of others allows us to anticipate challenges, identify potential solutions, and make more informed decisions, ultimately leading to greater success and growth.

In venture capital, the journey is long and successes are hard-won. Each victory, big or small, deserves celebration. Whether it's closing a deal, hitting a milestone, or seeing a portfolio company thrive, take a moment to appreciate these achievements. Share your wins, thank your supporters, and remember: in this marathon, every step forward counts.

Indeed once again super important. Your journey just doesn’t end at raising capital for the fund. You also need to achieve desirable returns for your LPs! And these returns will take time because a typical life of a fund is 10 years. So celebrating each and every personal success as well as team success is important to keep yourself motivated

I believe that it is crucial to celebrate small wins and develop fuel resilience with recognition. Don't wait for unicorns! Mark milestones, closed deals, positive feedback. Share wins, express gratitude. Stay motivated!

Celebrating successes is so important to remind everyone that the goals that everyone once thought were difficult to achieve have been accomplished, and to rally the team together to see how to make things better and move towards the next goal. These little rewards give our brains that dopamine boost that makes us want to continue striving towards the next goal.

This is important and its also a sign of leadership and gratitude. However, for me, nothing beats returning money to LPs at the right time and in line with their expectations on IRR from a VC investment.

I seek inspiration from being in the "market". I don't believe in armchair hunting. I have been an operator and then turned investor. Nothing substitutes meeting your prospective customers, competition's customers, dealers, traders, analysts, investors in first person. When you combine this with reviews off the net and books, articles, journals, you develop solid " intuition" about what's going to take off and what won't . Venture capital is a lot about the right solution but at the right time.

It is not simple, but you should find your spark. Rekindle the fire: Seek inspiration ! For example, read, network, learn at events. Connect with successful VCs, get fresh perspectives. Stay on the cutting edge.

Navigating the venture capital seas, Arabella the shark kept her fins tuned to the pulse of innovation, always seeking fresh currents of inspiration. She swam through a sea of knowledge, devouring books, podcasts, and the wisdom of the ocean's most successful creatures. Every webinar and workshop was like discovering a new feeding ground, rich with ideas and opportunities. Arabella knew that to stay sharp in the ever-evolving waters of venture capitalism, one must constantly seek the company of fellow visionary sharks, letting their innovative tales and experiences guide her through the uncharted depths of business. It's a journey not just through the waters of capital but through the vast ocean of creativity and possibility.

Seek it from diverse sources: stories of successful investors, insights from industry experts, new trends through workshops, and connections with inspiring peers. Read, attend, network, and learn. Fuel your passion with inspiring narratives, sharpen your skills with expert advice, and stay ahead of the curve with fresh trends. Remember, a motivated VC is a powerful force, driving innovation and shaping the future!

Stay connected with the VC community through forums, podcasts, or networking events. Hearing stories of resilience and success can reignite your passion and provide new perspectives. It's akin to open-source learning, where shared knowledge and experiences can help navigate through your own challenges.

This is great in theory but the reality is that founders need to be AAA problem solvers in a way that most can't handle. Sleep is scarce, food is whatever fills you, exercise is stress balls, hobbies is solving more problems...meditating is crucial as well as manifesting But you sacrifice a lot in the short term to be able to go from 0 to 1 then to 10 before you can even take your foot off the pedal It's a myth for ppl to think you can balance your life like above in the AI text and be a successful investable founder

Set healthy boundaries, manage your time & energy wisely, prioritize tasks, and delegate when needed. Remember self-care: prioritize sleep, healthy eating, exercise, meditation, or hobbies. A balanced VC is a more effective investor – sharper, more resilient, and ready to make the best decisions for you and your portfolio.

Three takeaways for personal health: 1) Sleep is your friend 2) Set aside time to disconnect 3) Be willing to take assistance

It's easier said than done but you have to prioritize self-care. You should invest: Set boundaries, manage energy, delegate. Prioritize well-being: sleep, eat healthy, exercise, de-stress. A healthy VC is a sharp VC.

Venture capital, like the treacherous seas, be a relentless pursuit, but I'm here to remind ye to look after yer own well-being amidst the storm. Just as Arabella the shark found balance in her underwater world, so too must ye strike a harmony between the hunt for treasure and self-care. Set those boundaries like a pirate guarding his loot, manage yer time wisely, and remember, even the most fearsome buccaneers need a bit of R&R by the campfire. So, take heed, me matey, and tend to the ship of yer own health, for in the end, it's the compass that'll steer ye toward true riches. Spread Shark Love??#divineintervention #gabenfreude

It is important not to lose sight of your "why" during downturns. The markets will always fluctuate and uncertainties will definitely arise, reminding yourself of the initial purpose behind your investments becomes paramount. Your "why" serves as a guiding compass, steering decisions beyond short-term hurdles. It also helps you go back to the drawing board to restrategise and plan appropriately. Your "why" is not just a destination, it's the journey that defines your long term impact and results.

Remember why you started in the first place: Just think of the most obvious reason: A lot of the technologies we are typing this very words on where once an idea in an entrepreneurs mind, that came to live and to masses by capital. You're helping people to get the plane of the ground!

The most challenging is to find your north star. You always must remember why you're here: - Reconnect with your purpose & vision in VC. - Align your actions with your values & impact. - Stay focused on the bigger picture & meaningful change. Do not be afraid to expose and fail ! Try to do your best !

It's not easy when it feels like you're lost but you need to remember to: Reconnect with Motivation: Reflect on why you chose a career in venture capital and the passion that initially sparked your interest. Align with Goals and Values: Revisit your long-term goals and values. Remind yourself of the impact you aim to create and the values you hold dear. Aligning your actions with your goals and values can help you navigate setbacks with clarity and purpose. Seek Inspiration: Surround yourself with sources of inspiration. Seek out success stories. Visualize Success: Create a clear mental picture of what success looks like for you. This can provide a sense of direction and help you stay focused during setbacks.

I recently had coffee with a friend of mine who grew up in a small town, didn't finish college, but is one of the most successful entrepreneurs I know. He told me that he often feels like he's not the smartest person in most rooms. However, what he does extremely well is execute, regardless of the circumstances. He said the one thing he's learned to do when facing setbacks is to have a mindset of just getting through the day and not worrying about things too far in the future or things he can't control. Setbacks in business are inevitable, but having a never quit mindset and taking it one day at a time, can lead to success in the long-term. My friend is an example of that.

VC is a numbers game. The sooner you realize that setbacks are part of the equation, the sooner you'll start aiming for the next opportunity. You only need one big win to make it. You'll inevitably have many setbacks but barely anyone will remember those in light of the opportunities that made it.

Create a system. Without a system to evaluate an opportunity, you would not know what went right/wrong. A good system will still produce losers but will allow you to tweak your criteria. Without it, you are just leveraging more luck than skill, which may/may not produce repeatable successful outcomes over time.

This is an industry of risks and failures as well as successes. Don’t blame yourself for anything. Test- evaluate- rest- analyze -improve (or discard) and repeat. Use ‘effectuation’ to manage uncertainty.

It’s a marathon, not a sprint. Kids don’t give up learning to walk when they fall, same here it is a numbers game indeed, you have to get up and keep trying. Keeping that in mind makes it a bit simpler.