Why Did The Investor Cross The Road: Lessons from a VC turned?Operator

Just like diving into a pool, entrepreneurship requires you to take the plunge and venture into the unknown. Observing from the sidelines will only get you so far. Nicole Dunn , a seasoned Venture Capitalist, made the plunge, transitioning to an Operator at one of Africa’s hottest fintech. This article explores insights into her journey?—?shedding light on the nuances of transitioning roles and providing valuable advice for founders and investors.?

Transitioning from Venture Capitalist (VC) to Operator:

The transition shouldn’t be abrupt; it should be a gradual immersion. While it is an exciting opportunity, it is vital to fully (to a large extent) understand the role before committing. Perhaps you can consider joining as an advisor or consultant first.

Challenges of Wearing the Operator?Hat:

Moving from being a VC assessing businesses to becoming an Operator, building and scaling them now presents unique challenges.?

As an investor your primary responsibility is to ask really good questions and as a founder you have to find the answers.

Undoubtedly, this can bring about intense pressure, and the discipline of maintaining calm energy amid highs and lows becomes crucial. Empathy deepens when you experience the struggles firsthand, making the transition an intriguing yet demanding journey.

Utilizing Your VC Superpower to Fuel?Growth

Being a VC exposes you to a network of people and gives you the know-how to understand and evaluate a business.? These existing relationships and a profound understanding of how VCs evaluate businesses provide a unique advantage. Now, you can bring your superpower from the VC world to work as an Operator. You can speak the investor language and save analysts’ time by seamlessly creating your Memos. As an Operator, it’s essential you understand the expectations of your investor, and it can help you get value out of the conversation. Many founders don’t have insight into it?—?being on the other side makes you know these things, and you can tailor your response appropriately.?

Choosing the Right Startup: Signs and Considerations (Tips for VCs considering the?move):

As a founder, initiate the conversation if you spot a VC you believe will add value to your company.? As a VC looking to move, assess your interests and how they tie into the business’s goal. Here are two questions to ask yourself as you consider:

• Is this a problem you’re realistically interested in spending the next phase of your career solving??
• How quickly can I add value to the team if I make this transition??
• In this existing leadership team, do I have a unique skill set that is complementary to the people who are already there?

Uniqueness in skill set and cultural fit within the leadership team are crucial. Communication is vital in gauging culture fit. Understanding the team’s core values, motivations, and conflict resolution style is vital.

Surprises in the Transition:

External appearances and perceptions may differ from behind-the-scenes (internal) realities. Spending time to check for culture fit and aligning core values with the team are crucial steps. It’s not just about the idea; the people you’ll be working with also play an integral part, and how they handle challenges matters.

Empathy in Action: Advice for Investors

As an investor, empathetic engagement with founders involves recognizing your value, knowing when to step back, and acknowledging their efforts. Unlearning certain practices and being adaptable are essential?—?approach founders with gentleness and express appreciation for their efforts. (Word on the street, it can get really tough.)

A Day in the Life of a VC-Turned Operator

Every day is different and unpredictable. Your daily routine could involve network-building, exploring opportunities, and constant context-switching. As a startup leader, time management is crucial; techniques like time blocking and balancing leadership responsibilities with individual contributions are essential for success.

Encouraging investors to tread the operator route can contribute to the growth and success of the African entrepreneurial landscape. Being on both sides of the field gives you a broader perspective, and you can extend more grace and deliver more impact.

This discussion was part of our monthly AMA Sessions, joined by Nicole Dunn of Revio and Nubi Kay’, a Managing Partner at HoaQ. You can listen in here