People in VC, why does it feel like the VC space is filled with shallow people who lack depth? Recent news about how ghostwriters make a fortune writing tweets for VCs was disappointing. So many funds popping up left right and center to chase the 'next big thing' in recent times. How does one become a person of substance in this industry over the long run? For context, young person in venture here.

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Move to PE

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This is the way

My hunch is that you need operating experience to be of more “substance” as a VC.. But also it feels like unfortunately the incentives of VC partners basically turns it all into a quasi-ponzi scenario in the long run atm

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The top tier funds have designated deal teams, advisors, and LPs with expertise in specific sectors and functions. Many of the partners were also former founders in the specific sectors.

Problem is there’s a lot of basic influencers who label themselves as investors, can raise a little capital/have family money, and take a spray and pray approach to investing <$1m per company

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Because VC funding has been commodotized and most investors lack subject matter expertise in a way they did historically.

Add to this 10yr periods to ID fund performance / who’s actually good at investing, and in the interim what you’re left with is people trying to differentiate by marketing themselves / their funds.

Also I think it’s hard to be an expert in anything when you’re getting pitched all day every day on a million different niche “disruptors.” Even if you’re an expert in something, there’s so many things you won’t know within a certain vertical.

I think investing also requires some kind of crude calculus, especially if you want to hold significant stake or board seats. You have to be more involved so that makes you way more selective in what you invest in. Everyone’s looking for a home run cause otherwise it’s not worth the time investment

It’s a function of the economic environment over the last few years where fundraising was easy and diligence was non existent. Focus on being a good investor; the fake VCs will wash out

Full stop there’s a lot of firms out there that shouldn’t exist. I’ve seen a lot of firms with 0 value add that follow on other investors. Works well in a everything up market, but it gets ugly in times like now.

You’d also be surprised at “big names” with returns that are really subpar across multiple vintages

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