Venture Capital 101: A Heart-to-Heart about Impostor Syndrome

Hey fellow founders and aspiring VCs! Today, let's talk about something that often goes unspoken but affects many of us: impostor syndrome.

It's that sneaky feeling of self-doubt that can creep up on us despite our achievements.

For many years, even just the thought of acknowledging I may be facing impostor syndrome would give me impostor syndrome. After many years of working with founders, I have learned that this is one of the most commonly faced psychological challenges - and barely anyone is talking about it. In the past two weeks alone, I have had six conversations with founders that either directly or indirectly related to impostors syndrome.

In this post, we'll dive into what impostor syndrome is, why it matters, and how we can overcome and avoid it in our professional journeys.

What's Impostor Syndrome, Anyway?

Impostor syndrome is that nagging feeling that we're not as competent as others think we are. It's when we constantly doubt our accomplishments and worry about being exposed as frauds. Even when we have proof of our abilities, we tend to attribute our success to luck or good timing, rather than our hard work and skills. This can lead to anxiety, self-doubt, and the ever-present fear of failure.

Here are a couple of examples to illustrate how impostor syndrome might manifest in our lives:

1. The Successful Startup Founder: Imagine a founder who has successfully launched a startup, secured funding, and grown the business. Despite these accomplishments, they secretly fear that they just got lucky, and that their success is a fluke. They worry that at any moment, their investors or employees will discover they're not as capable as they seem.
2. The Rising Star VC: Picture an up-and-coming VC who's made a series of successful investments and earned a reputation as a savvy dealmaker. Yet, they can't shake the feeling that their success is due to external factors, like being in the right place at the right time, rather than their own expertise. They may even feel like they don't deserve the accolades or promotions they receive.

As Carl Richards eloquently wrote his NYT piece titled Learning to Deal With the Impostor Syndrome:

It’s at the moment when you’re most vulnerable that all your doubts come crashing in around you. When I first heard that voice in my own head, I didn’t know what to make of it. The fear was paralyzing. Every time I sent a sketch or something else into the world, I worried the world would say, “You’re a fraud.”

Why It Hits Entrepreneurs and Emerging VCs Hard

Let's face it: our careers involve high stakes, uncertainty, and a ton of pressure to perform. Startups and venture capital firms are known for their intensity, and these factors can amplify feelings of self-doubt, making it easy for impostor syndrome to take hold.

How to Kick Impostor Syndrome to the Curb

1. Spot the signs: First things first, we need to recognize when impostor syndrome is lurking. Keep an eye out for feelings of self-doubt, fear of failure, and the tendency to downplay your achievements.
2. Rethink your thoughts: When negative self-talk pops up, question its validity. Identify the unhelpful thoughts that fuel impostor syndrome and replace them with more positive, realistic beliefs.
3. Give yourself a high-five: Make a habit of celebrating your wins, big and small. Keep track of your successes and look back on them when self-doubt starts creeping in.
4. Rally your squad: Share your feelings with friends, mentors, or colleagues you trust. They can offer perspective and remind you of your strengths. Plus, connecting with others facing similar challenges can be incredibly helpful.
5. Be kind to yourself: Remember, everyone has moments of self-doubt and makes mistakes. Treat yourself with kindness and understand that setbacks are just part of the journey.

Steering Clear of Impostor Syndrome

1. Set achievable goals: Make sure the goals you set are realistic and match your skills and resources. Break down bigger objectives into smaller tasks to ease the pressure and increase your sense of accomplishment.
2. Cultivate a growth mindset: See challenges as opportunities to learn and grow, rather than tests of your worth. Embracing personal development can help keep anxiety at bay.
3. Build resilience: Reframe failures as stepping stones to success. Recognize that setbacks are inevitable and use them to fine-tune your approach and strengthen your resolve.
4. Find a mentor: Look for experienced entrepreneurs or VCs who can offer guidance and share their stories of overcoming impostor syndrome. This can help you see your abilities more clearly and boost your confidence.
5. Play to your strengths: Identify your unique talents and use them to stand out from the crowd. Recognizing your strengths can help counter feelings of inadequacy and impostor syndrome.

To wrap up, we need to acknowledge that impostor syndrome can be a real obstacle for entrepreneurs and emerging VCs. But by being aware of the signs, practicing self-compassion, and focusing on growth, it can indeed be overcome. We're all in this together, so let's build each other up and support one another in our quest to conquer self-doubt and achieve our goals together.