How do you develop and maintain a competitive edge in the venture capital market?

This is a theme that has emerged over recent years and I believe it’s a great trend; being specific. As an emerging manager, beside building a track record a brand reputation must be quickly identified. By being a sector specific fund or a fund of focus, you can utilise your expertise in your field to gain an image in front of startups and other VCs. You will become known. Your advice/opinion will be sort after. You will win better deals quicker.

Identify specific industries, sectors, or geographic regions where your VC firm has expertise and can offer unique insights. Specializing allows you to build a reputation as experts in those areas, attracting startups seeking not only funding but also strategic guidance.

The team is what matters to the investors in the funds and to the portfolio companies we are serving. Some traits that I look for in team members are humility, courage, drive, responsibility, and energy. It makes for a productive group that can bring value, mitigate risk, and have a ton of fun while making a massive impact. Best of luck out there in reshaping the VC industry which has an opportunity to be positively influential for people.

VC is a people business. Like startups, the qualitative personnel are key and arguably carry most weighting. I believe a combination of operational/founder and investment experience result in the best performing funds. Operational guys and girls know the rollercoaster. They will be there to guide the better and tougher times. They’re more understanding when things aren’t going well and founders will trust in forward plans, when that plan is being made with people with prior success. Combine that with investment experience - those who know how to construct a portfolio, manage capital, construct good deals, crunch the quantitative side and you’re on to a winning formula.

Team - as in startups, it's the most important for VCs too. Having a diverse skill set is very important. If everyone is from the same University, same professional background (consulting and investment banking) and no corporate or operational experience, these days those teams don't cut. What's needed is a mix of people with both industry and investment experience, and if you can find someone with both those experiences then they are a plus for a VCs team. Trust and communication is paramount amongst the team members!

As an early stage startup investor, how do you stand out from the crowd and attract the best founders to partner with you? Capital is important, but all VCs have money, requiring you to differentiate yourself with a unique value proposition. Particularly as capital has reduced in the last 12 months, and more founders are looking for an investor that gets them to the next phase. VC's can set themselves apart by ensuring they have deep knowledge in an industry so they can evaluate opportunities better and offer more bespoke hands-on support beyond capital. This includes leveraging your network and providing best-in-class guides, templates and processes to help startups thrive. Lastly, you want to be founder-friendly with investment terms.

The interesting thing about having a community is it does not have to be “local” in our physical location, neither strictly connected to the narrow scope of our work. The technology has rendered physical distance irrelevant as far as having a community is concerned; And the different perspectives others share widen and refresh our own.

I believe a single operating system (like iOS) could be prevalent in VC, and something a lot of emerging managers could utilise! VC is a people industry, but it’s also one of the most under digitised. We are seeing more funds make good use of tech but the adoption pace is slow. It can definitely be a USP to create efficiencies in workflows but it must not fully replace the process.

Probably the hardest avenue to follow, most investors tend to operate within the comfort zones that are tried and tested, so introducing an innovative solution is often overlooked until something gives. If everyone operates in the same way, and sources deals through the same shared avenues to de-risk opportunities, then by the same token you minimize your fund’s alpha. Maybe it’s time to evaluate opportunities from a different perspective?

A while back as a founder, I spoke with a VC who was candid about not having all the answers and making mistakes. This authenticity was invaluable to me. Now, as a VC myself, I believe we should also embody an entrepreneurial spirit and be nimble. When we spot areas for improvement, quick action is essential. This agility enhances our support to portfolio companies, going beyond just capital to include actionable insights and a readiness to pivot. By adopting the entrepreneurial mindset we seek in founders, we strengthen our relationship with them, becoming not just investors but true partners in building innovative companies.

Better IP Diligence: before hiring an IP lawyer to do full and expensive diligence, ask the CEO 5 questions What is the worst prior art or other key threats to invalidate your key IP? What is the easiest way for competitors to dodge infringement of you key IP, what are the limits and ways to dodge around? What are the worst Freedom-to-Operate threats; what IP of others are you most at risk from? What are the Next-best Alternatives; ways to satisfy the customers’ Job-to-Be-Done without using your key IP? What are the companies plans for the future, eg version 2.0, 3.0 and why those features and not others; what is the IP protection and risk profile for those future versions?