A Young VC Investor’s Anxiety: Investing Is Hard; Waiting for the Verdict Is Harder

#VCIndustry In VC, an industry that is intensely results-oriented, the strongest sense of achievement undoubtedly comes from backing good companies. For many young investors new to the profession, however, even that feels out of reach. They do not even get an opportunity to try. ‘It is common not to be able to invest in a project you believe in.’ ‘Partners are never completely certain about a project. With deals that could go either way, they are usually more likely to pass.’ Another common situation: a young VC professional reviews 100–200 projects a year, passes about 1/10 to the boss for further evaluation, and, after complete due diligence (DD), may feel determined to champion only 3–5 all the way. Yet even at the final stage, after putting enormous effort into persuading the boss and bringing a partner and a term sheet (TS) to meet the founder, they may return with the term sheet still in hand. A deal may fail at the last hurdle, or the partner may ignore the proposed investment altogether. Many VC professionals go more than two years without an opportunity to make a single investment. ‘By the end of championing a deal, you can even begin to doubt yourself.’ ————————————————————— After the anxiety of being unable to invest comes the powerlessness of finally making an investment and waiting for time to deliver its verdict. ‘Investing means doing something you cannot control.’ However much preparation and careful assessment precede an investment, afterward you still face macro trends, rapidly changing technology, competitors’ moves, and large companies suddenly entering the market. If you finally invest but developments you could not anticipate emerge over time, and progress falls short of expectations, you must constantly watch for changes. You may even worry that the company will exhaust its cash in another month or two.