A powerful, often overlooked, due diligence signal for a fund is the quality of its junior team. Great managers attract, retain, and effectively communicate their vision to top young talent. By networking with peers, investors can gauge if a firm is a talent magnet, which strongly indicates the quality of its leadership and future prospects.
Junior investors often seek external validation. A better approach is to study successful investors to build a strong internal instinct for what greatness looks like. Once developed, you must trust this instinct and back your non-consensus ideas with confidence, as seeking consensus or borrowing conviction is a critical mistake in venture.
Instead of focusing solely on networking and deal flow sharing, a young investor's true advantage is having more time and fewer obligations. This allows them to conduct deep research, speak directly with buyers, and form a unique, proprietary thesis that goes beyond the surface-level chatter common in venture circles.