Many late-stage investors focus heavily on data and metrics, forgetting that the quality of the leadership team remains as critical as in the seed stage. A new CEO, for example, can completely pivot a large company and reignite growth, a factor that quantitative analysis often misses.

Extensive diligence on a seed-stage company's market or product is often wasted effort. The majority of successful seed investments pivot to a completely different business model, making the founding team's quality and resilience the most crucial factor to evaluate.

The most effective initial value creation strategy is not to reinvent a company, but to identify its core strengths and amplify them. This approach, inspired by Dolly Parton's quote to "figure out who you are and then do it on purpose," builds on inherent momentum and avoids breaking what works.

Ben Horowitz states a common VC mistake is over-indexing on a startup's weaknesses. The better investment is a team that is unequivocally the best at a single, critical thing. Being "pretty good" at everything is a red flag, as greatness in one area is what drives extraordinary outcomes.

Managers often spend disproportionate energy on low-performing employees. The highest-leverage activity is to actively invest in your top performers. Don't just leave them alone because they're doing well; run experiments by giving them bigger, more visible projects to unlock their full potential and create future leaders.

Delaying key hires to find the "perfect" candidate is a mistake. The best outcomes come from building a strong team around the founder early on, even if it requires calibration later. Waiting for ideal additions doesn't create better companies; early execution talent does.

While efficient, focusing solely on fixing what's broken can be a major blind spot. Harvey's CEO realized that a part of the business doing "super well" could often be doing 10x better with more resources. The biggest growth lever might be amplifying a success, not just plugging a hole.

The hardest transition from entrepreneur to investor is curbing the instinct to solve problems and imagine "what could be." The best venture deals aren't about fixing a company but finding teams already on a trajectory to succeed, then helping change the slope of that success line on the margin.

Lior Susan highlights the biggest mental hurdle for former operators becoming VCs: internalizing the power law. Operators are builders wired to fix problems and believe they can turn any situation around. In VC, success is driven by a few massive outliers, requiring focus on winners, not on fixing every company.