In venture capital (VC), the size of a fund isn’t just a number – it dictates the nature of your role and the skills you need to thrive.
This contrast between large and small funds is stark, especially in the distribution of responsibilities. The VC fund size does matter.
Let’s dive deeper into how fund size influences your job in VC and how you can adapt to these differences.
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VC Financial Modeling Templates
In large VC funds, often exceeding hundreds of millions of dollars, your role tends to be highly specialized.
One key area of focus is sourcing. Sourcing involves identifying and evaluating potential investment opportunities. It’s a critical role that requires a keen eye for market trends, a deep understanding of specific sectors, and a vast network of contacts.
For those aspiring to excel in sourcing at a large fund, here are some actionable tips:
In contrast, smaller VC funds, sometimes just a few million dollars in size, require a more versatile approach.
Here, you’re not just sourcing deals; you’re also managing investments, supporting portfolio companies, and often handling operational aspects of the fund.
To be a successful jack-of-all-trades in a small fund, consider these strategies:
For more insights into the venture capital world, don’t forget to check out the original article, “Venture Capital Takeaways 2023” on Confluence VC. It offers a comprehensive look at the latest trends and strategies in VC, a must-read for anyone looking to make their mark in this field.