Venture firms have processes like investment committees to prevent bad decisions. However, to generate exceptional returns (alpha), an investor must ultimately trust their own unique point of view, even when it differs from the consensus. This contrarian thinking is what firms hire new talent for.
The venture industry's constant stream of 'amazing' news creates a false impression that success is easy and immediate. Foundry Group's Seth Levine advises new VCs to relax, ignore the 'bullshit,' and understand that building great companies is a long-term process with few overnight successes. A calm mind leads to better decisions.
Instead of just taking meetings for reps, Maveron's Natalie Dillon advises new investors to track which companies they naturally gravitate towards. By reviewing this personal list after six months, they can identify patterns and develop their own authentic investment thesis, which is distinct from simply following their firm's official rubric.