Investor Chris Reisach argues that if an investment doesn't make sense to you, the problem likely lies with the business, not your intellect. He advises junior VCs to trust their confusion as an adverse signal. A founder's inability to clearly articulate their vision is a fundamental flaw, and investing without true conviction is a recipe for failure.
At IVP, even when a partner is passionate about a deal, the firm encourages them to 'sleep on it' after a debate. This deliberate pause allows the partner to process the team's feedback without pressure, often leading to a more rational assessment of their own conviction and preventing investments driven by emotion rather than collective wisdom.
Arif Hilali of Bain Capital Ventures warns investors against mistaking Silicon Valley hype for mainstream adoption. He uses cloud computing's slow, multi-decade rollout as a parallel for AI, suggesting that even when a trend seems obvious inside the tech bubble, its true market penetration takes much longer than anticipated.