I caught up with another investor this week. We recounted her journey from tech start-up founder to venture capital fund founder. As she raised capital from VCs, she recognized that she had the chops to be on the other side of the table as an investor. She also realized there was a lot she didn’t know about the business of venture capital. She knew she had a knowledge gap, in other words.
She was passionate about being an investor, so she set out to fill her knowledge gap. She started by becoming an angel investor to build her muscles around getting deals done. Next, she invested in a few venture capital funds as a limited partner (LP). These investments helped her build relationships with other fund managers and LPs, which helped her develop a better understanding of how to build, grow, and lead a fund.
Fast forward to now: her fund has raised eight figures in capital and is off to the races investing in great founders.
I love this story. It shows that regardless of your starting position, if you’re self-aware and willing to put in the work you can overcome any shortcomings (perceived or real).