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Fernando Lelo de Larrea: 6 Ways To Become The Leader Your VC Firm Needs

Fernando Lelo de Larrea

Fernanco Lelo de Larrea

Fernando Lelo

Fernando Lelo

Fernando Lelo de Larrea economista del ITAM

Fernando Lelo de Larrea economista del ITAM

Fernando Lelo de Larrea economista del ITAM

Fernando Lelo de Larrea economista del ITAM

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Fernando Lelo de Larrea

Fernando Lelo de Larrea: 6 Ways To Become The Leader Your VC Firm Needs

Most people go into venture capital because they want to be able to exit their investment and get their money out of the company”
— Fernando Lelo de Larrea
MIAMI, FLORIDA, ESTADOS UNIDOS, September 28, 2022 /EINPresswire.com/ -- It’s no secret that being a VC is a lot of work. Even the smallest firms are operating at peak capacity with their portfolio companies, monitoring their progress and tracking the competitive landscape. For most VCs, this means putting in more hours than they ever have before, which can be taxing on personal relationships and overall well-being. Or, as one of our friends from another firm put it: “VC feels like a second job where you never get paid enough for what you do.”That sentiment has led to an interesting trend of VCs leaving firms to start new ones — or at least join them as an investing partner or adviser. It is becoming more common for VCs to take non-standard roles at other venture firms. After all, not everyone who wants to be a VC can or should run one.


The cost of being a VC
The cost of being a VC is not just financial. It’s also the cost of your time, health, and relationships. Being a VC is a non-stop rollercoaster with no end in sight. The first thing to note is that it’s a full-time job. You’re not going to be able to run a fund like a side hustle. Being a VC requires a huge amount of time and effort. Even at the smallest firms, where your team is just you, it’s going to be a full-time job. If you want to be successful, you will be working on your business 24/7, 365 days a year. You’ll need to be on top of everything. You’ll need to be reading industry news and trends daily and meeting with your portfolio companies at least once a week. You’ll need to be networking with other VCs, entrepreneurs and anyone else you think could help you. Because of all these demands on your time, it can be difficult to find people willing to join your team. And it can be hard to find the right person to fill each role.


Tracking the competitive landscape
The venture capital industry is highly competitive. As a VC, you’ll need to constantly monitor your competitors to stay on top of the latest trends. With so many new firms popping up and veteran firms growing their funds, it’s crucial to keep track of who’s working on what and how they’re approaching investments. To maintain your competitive edge, you’ll need to be keeping tabs on your competitors’ deals. It can be helpful to create a spreadsheet with tabs for each of your competitors, which allows you to track the companies in their portfolios and any trends you may be able to identify. This spreadsheet can be incredibly helpful when pitching to deal with a company in your competitor’s portfolio — you’ll be able to learn from their mistakes and successes and make sure you’re offering something better thanks to your thorough research.


Being constantly on-call
Being a VC is a job that requires you to be on call 24/7 — because your companies are. While there are some companies that will only contact you when they have something urgent on their hands, the majority of your portfolio companies will be contacting you on a regular basis. They’ll be emailing or calling you with questions about how to improve their product, what potential investors they should be talking to, and how they can grow their business. Whenever you’re a partner at a VC firm, there will be times when you’re sitting around waiting for something to happen — and it won’t be happening quickly. This can be frustrating when there’s so many things you could be doing but can’t because you need to wait for someone else to take action.


Lack of exit opportunities
"Most people go into venture capital because they want to be able to exit their investment and get their money out of the company" says Fernando Lelo de Larrea, leadership expert.
The truth is that exit opportunities in venture capital are few and far between — in many cases, investors will wait years for an exit. If you decide to go into venture capital, make sure you’re aware that exits won’t happen quickly. The good news is that as a VC, you can sometimes help your companies improve their growth to the point where they can be acquired. If you add value to your company and make them more attractive to acquirers, you may be able to start making some extra money on your investment.


Boredom and burnout
Boredom and burnout are two very real things that can happen if you’re not careful as a VC. For a lot of people, the best solution is to find a new venture capital fund or join a larger fund. In either situation, the person can enjoy the thrill of investing and the gratification of helping to build new companies without the frustration and grind that comes with being a smaller fund. If you’ve been in VC for a while and you’re still feeling bored, you may want to consider switching funds. If you’ve been in the industry for some time, you also may want to consider changing funds if you’re a partner at a small fund. You may be bored with the position or the fund size, or you may want to move to a fund that can provide you with more capital.


Summing up
Being a VC is a dream job for many people — and it’s a job that’s becoming increasingly popular. There’s no one path to becoming a VC, though some paths are more open than others. If you want to become a VC, what you do before you enter the industry may matter more than what you do once you’re in it. If you’re looking to get into venture capital, you could start by networking with existing VCs. Approach them and ask about how you can get involved in their business. You may be able to help them out with administrative tasks or by attending events in your area where you can network with people in the industry. You may feel the need to start at a smaller fund, where you can learn the ropes and prove to investors that you have what it takes to succeed. Once you’ve got some experience under your belt, you can go out and raise your own fund.

Mia Atkinson
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