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The VC Fund Size Does Matter

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.

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This contrast between large and small funds is stark, especially in the distribution of responsibilities. The VC fund size does matter.

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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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The Sourcing Specialist in Large Funds

In large VC funds, often exceeding hundreds of millions of dollars, your role tends to be highly specialized.

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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.

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For those aspiring to excel in sourcing at a large fund, here are some actionable tips:

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  1. Develop a Niche Expertise: Specialize in a sector or technology that’s in line with the fund’s investment focus. Whether it’s AI, biotech, or renewable energy, having deep knowledge in a specific area can make you an invaluable asset.

  2. Expand Your Network: Attend industry conferences, join professional groups, and participate in webinars. Building relationships with founders, other investors, and industry experts can lead to high-quality deal flow.

  3. Stay Informed: Keep abreast of the latest industry trends and emerging startups. Tools like Crunchbase, PitchBook, and even tech news platforms can be invaluable for sourcing.

The Versatile Player in Small Funds

In contrast, smaller VC funds, sometimes just a few million dollars in size, require a more versatile approach.

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Here, you’re not just sourcing deals; you’re also managing investments, supporting portfolio companies, and often handling operational aspects of the fund.

https://www.redbubble.com/i/poster/Jack-of-all-trades-by-mursart68/30692057.LVTDI

To be a successful jack-of-all-trades in a small fund, consider these strategies:

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  1. Broaden Your Skill Set: Learn about different stages of the investment process, from due diligence to exit strategies. Online courses and workshops can be great resources for this.

  2. Cultivate Strong Relationships: In smaller settings, your connection with founders can be more personal. Offer your expertise, make introductions, and be a sounding board for their ideas.

  3. Embrace Flexibility: Be ready to wear multiple hats. Whether it’s helping a startup with their go-to-market strategy or managing investor relations, versatility is key.


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.

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