When you think about venture capital, it’s very easy to picture the glamorous networking events, the intensity of pitching, and closing multi million dollar deals that fund the next unicorn. But that’s just one side of the story. Behind the glossy headlines, there’s an unsexy reality that many VCs overlook– it’s what separates those who thrive in the industry and those who are destined to burn out. So let’s talk about the less talked-about aspects in VC that are as important to success as a great pitch deck.
It’s a numbers game–and the odds aren’t in your favor.
We all hear about unicorns–the rare startups that reach a billion-dollar valuation, but what you don’t hear about are the countless companies that never make it despite being in a VC’s portfolio. Only 1 in 10 investments might succeed. Investing in statutes is part lottery and part visionary market leader. You’re taking a lot of small bets, hoping one or two hit the jackpot. If you’re in VC to “always win”, you’re in the wrong field.
The glorified hustle is actually a grind.
Sure, the VC life is filled with high-level meetings and constant presentations, but a bulk of the work can also be meticulous and repetitive. You’ll be reviewing thousands of pitch desks, conducting due diligence, digging into financials, and spending hours on calls. And honestly, most of the companies pitching you aren’t that great. VC firms sift through hundreds, if not thousands of startups to find that one aligns with their investment thesis. Most startups are underwhelming. If you’re thinking you’re going to discover the next Google every week, I hate to burst your bubble. VCs spend more time saying “no” than they do writing checks.
You’re playing the long game–and it’s a waiting game.
One of the most “unsexy” aspects of VC is that it takes years– sometimes a decade– before you see any returns. Once you invest in a startup, you’re not just cashing out after a successful round of funding. You’re in it for the long haul, waiting for an IPO or acquisition, and in the meantime, managing portfolio companies' needs for advice, direction, and even damage control, VC isn’t about fast money. If you’re in the game for quick winnings, be prepared to be disappointed.
The “cool factor” is overrated.
The picture painted of visionary founders, exciting tech conferences, and being at the cutting edge of innovation is one that is painted with a flawed paintbrush. Most daily responsibilities in VC include sitting in front of spreadsheets, responding to emails, and navigating bureaucracy. Deals don’t come from attending cool pitch events, but from building long-term relationships with founders, other investors, and the folks in your network. The real deals are happening over coffees and steady, ongoing mentorship–far away from the spotlight.
You’re more of a therapist than an investor.
Founders go through the highest highs and lowest lows, and guess who’s on the receiving end of all that emotional rollercoaster? You, the VC. Startups run into all kinds of problems– team conflicts, product families, cash flow issues, and more. As a result, VCs end up becoming part-time therapists and navigate those challenges. Being a great VC isn't just about the financial edge, you need to have emotional intelligence. Sometimes the best help you can provide a founder isn't capitalism but guidance and a calm voice during chaos.
Herd mentality kills innovation.
It’s pretty ironic that VCs pride themselves on innovation when a lot of them fall into her mentality following trends rather than revolutionary ideas. Why? Because nobody wants to miss out on the next big thing. This “FOMO” leads to mass amounts of capital being poured into sections that are oversaturated (maybe think… Fintech) while truly groundbreaking or out of box ideas might be passed over because they’re too “risky”. Trend chasing has truly become a problem in the VC ecosystem. If you want to make a real impact you have to have the courage to go against the grain and back founders doing something different, even when the popular girls are against it.
