Fernando Lelo de Larrea: 6 ways to become the leader your venture capital firm needs

Fernanco Lelo de Larrea

Fernando Lelo de Larrea economista del ITAM

Fernando Lelo de Larrea economista del ITAM

Fernando Lelo de Larrea economista del ITAM

Fernando Lelo de Larrea: 6 ways to become the leader your venture capital firm needs

MIAMI, FLORIDA, ESTADOS UNIDOS, October 12, 2022 /EINPresswire.com/ — It’s no secret that being a VC is a lot of work. Even the smallest firms are working to the best of their ability with their portfolio companies, monitoring their progress and tracking the competitive landscape. For most VC investors, this means putting in more hours than ever, which can take a toll on personal relationships and overall well-being. Or, as one of our friends from another firm put it, “This sentiment has led to an interesting trend of venture capitalists leaving companies to start new ones, or at least joining them as investment partners or advisors. It is becoming increasingly common for VCs to take on unusual roles in other VC firms. After all, not everyone who wants to be a VC can or should run one.

The cost of being a VC

The cost of being a VC is not just financial. It is also the cost of your time, your health and your relationships. Being a VC is a non-stop roller coaster that has no end. The first thing to keep in mind is that it’s a full-time job. You’re not going to be able to run a fund like it’s a side job. Being a VC requires a huge amount of time and effort. Even in smaller firms, where your team is just you, it’s going to be a full-time job. If you want to be successful, you’ll be working on your business 24 hours a day, 365 days a year. You’ll have to stay on top of everything. You’ll need to read industry news and trends daily and meet with your portfolio companies at least once a week. You’ll need to network with other investors, entrepreneurs and anyone else you think can help you. Because of all these time demands, it can be difficult to find people willing to join your team. And it can be difficult to find the right person to fill each role.

Keeping track of the competitive landscape

The private equity industry is highly competitive. As an investor, you’ll need to constantly monitor your competitors to stay on top of the latest trends. With so many new companies emerging and veteran firms raising funds, it is critical to be aware of who is working on what and how they are approaching investments. To maintain your competitive edge, you will need to keep an eye on your competitors’ operations. It can be helpful to create a tabbed spreadsheet for each of your competitors, allowing you to track the companies in their portfolios and any trends you can identify. This spreadsheet can be incredibly useful when it comes time to do a deal with a company in your competitor’s portfolio: you’ll be able to learn from their mistakes and successes and make sure you offer something better thanks to your thorough research.

Always be on call

Being a VC is a job that requires you to be on call 24 hours a day, because your companies are. While there are some companies that only contact you when they have something urgent on their hands, most of the companies in your portfolio will contact you on a regular basis. They will email or call you to ask how to improve their product, which potential investors they should talk to, and how they can grow their business. Whenever you are a partner in a venture capital firm, there will be times when you will be sitting around waiting for something to happen, and it won’t happen quickly. This can be frustrating when there are many things you could be doing but can’t because you have to wait for someone else to act.

Lack of exit opportunities.

“Most people get into private equity because they want to be able to exit their investment and get their money out of the company,” says Fernando Lelo de Larrea, a leadership expert.

The truth is that exit opportunities in private equity are few and far between; in many cases, investors wait years to exit. If you decide to get into private equity, make sure you are aware that exits will not happen quickly. The good news is that, as a VC, you can sometimes help your companies improve their growth to the point where they can be acquired. If you add value to your company and make it more attractive to acquirers, you can start making some extra money on your investment.

Boredom and burnout

Boredom and burnout are two very real things that can happen if you are not careful as a VC. For many people, the best solution is to find a new VC fund or join a larger fund. In either case, the person can enjoy the excitement of investing and the gratification of helping to create new companies without the frustration and hassle that comes with being a smaller fund. If you have been in the venture capital industry for a while and still feel bored, you may want to consider switching funds. If you have been in the industry for some time, you may also consider switching funds if you are a partner in a smaller fund. You may be bored with the position or the size of the fund, or you may want to switch to a fund that can provide you with more capital.

Summary

Being a VC is the dream job for many people, and it is a job that is becoming increasingly popular. There is no single path to becoming a VC, although some paths are more open than others. If you want to become a VC, what you do before you enter the industry may matter more than what you do once you’re in it. If you want to get into the VC industry, you can start by networking with current investors. Reach out to them and ask them how you can get involved in their business. Perhaps you can help them with administrative tasks or by attending events in your area where you can network with people in the industry. You may feel the need to start in a smaller fund, where you can learn your way around and show investors that you have what it takes to succeed. Once you have gained some experience, you can go out and raise your own fund.

Mia Atkinson
Media Captains
email us here

Fernando Lelo de Larrea – El Peligro de Compararse y Cómo Leer Un Libro a la Semana