Here's how you can achieve long-term success in venture capital through strategic thinking.

Venture is cyclical; sometimes you appear momentarily to be “right”; sometimes “wrong”. A sage observed “never confuse a bull market for genius”. Have core investing principles. Live them. Don’t stray. I invest super early. My only diligence is the Founder. Do I trust them and believe they have integrity? If yes, will their skills let them attract financial capital, attract and retain human capital, and execute. If my gut says “no”, when analysis says “yes”, I defer to my gut. I have a long list of what I won’t invest in; some for analytical reasons, others for personal values. My core principles are mine. Yours should be yours. Have them. Follow them. Don’t chase shiny objects. Author: The Soul of the Deal. 📚

Completely agree. Capitalizing on future opportunities in areas like AI, renewable energy, and digital health are not just trends but pivotal points of transformation in our economy. Consistently conducting proactive research and analyzing industry reports, attending conferences, and engaging with thought leaders will help you stay ahead of the curve.

Achieving long-term success in venture capital requires a strategic approach encompassing several key elements. First, staying attuned to market trends is crucial for identifying promising sectors and emerging opportunities. Conducting thorough due diligence ensures informed investment decisions by evaluating a startup's potential and risks. Adding value beyond capital, such as mentorship and networking, fosters growth and competitive advantage. Effective risk management mitigates potential downsides and ensures portfolio stability. Creating synergy within the portfolio can unlock additional value through strategic collaborations. Finally, having a clear exit strategy maximizes returns and enables reinvestment in new ventures.

One chart businesses. What is the one chart that explains why this sector / idea must win. Ideally in a place others are missing. Example - demographic trends and labor costs. These are very slow to change, inexorable. So what do they mean for the future? When you invest early stage, you are building a company that will have its biggest wins starting in 7-10 years, and if huge, growing for decades thereafter. What will that world look like? You must live there.

Early stage this is team, team team. And yes, tech and product / market size - the fundamentals. But team first. For team - go deep, put in the time, do they make your hairs stand on end, are they organized, killer storytellers, also killer builders? Can they sell? Everything is selling. Selling you on their vision, customers on their product, employees on their wild startup ride. References are key too - people who managed them before, worked with them. Do your own digging here.

Here are some due diligence factors: - New tech - Market data - Global landscape - Advertising costs - Government regulations - Performance of companies with similar business models - etc. Make a checklist and make sure your personal (subjective) views aren't influencing your investment strategy.

Due diligence is indeed the cornerstone of any successful venture capital investment. Beyond the business model, an Important step is to scrutinize financial statements to understand the company’s revenue streams, cost structure, and financial health. This includes historical performance and future projections for which a thorough market analysis is needed to validate the market potential.

A good investment is a win-win for both the entrepreneur and the investor. Identifying potential disruptors in the market and providing new insights as an existing customer or potential user to entrepreneurs could create new opportunities, such as analyzing how emerging technologies impact their business activities.

I like the use of word “Network Leverage” something that can be done to use your network to open doors for your portfolio companies. Introduce them to potential partners, customers, and industry experts. By adding value beyond financial investment, you can foster stronger relationships with founders and significantly enhance the potential for success.

The ability to assess the risk-adjusted returns for any startup at the time of the investment is fundamental and it's a byproduct of: 1. initial ownership: the combination of check size(as a % of the fund), price (is it market? what are the valitation points the company has proved to justify it?) will be the basis of your calculation 2. ability to de-risk the investment through your skills and/or network As you enter portoflio management phase, the most important lever you have is clear, consistent, and reliable information exchanges with the founder. An informed investor is an empowered investor.

Strategic thinking not only strengthens individual companies but also creates a more resilient and competitive portfolio as a whole. It’s about leveraging synergies to maximise growth potential and ensure sustained success over the long term in the dynamic world of entrepreneurship.

Building a Strong Network Cultivate relationships with successful entrepreneurs, angel investors, and industry experts. This network provides valuable deal flow, insights into promising sectors, and early access to high-quality startups.

Conhecimento nunca é demais, aprenda a buscar ele a todo momento, independente de onde esteja na empresa. Isso é um diferencial muito valorizado em boas empresas e potencializa sua carreira. Pesquise temas que são importantes e que estejam em alta; isso vai te colocar na frente de outros profissionais.

Keep an eye on economic indicators that can influence startup environments, such as interest rates, funding availability, and global market conditions.