Many VCs struggle to raise funds because of a "narrative gap" between their strategy and what LPs value. The most effective hack is to hire a former LP, who brings instant credibility and an innate understanding of how to translate the firm's vision for that specific audience.
Following conventional wisdom and copying others is a recipe for average results. By definition, achieving greatness requires doing something original and unconventional that others have not tried. This applies across business, sports, and all areas of life.
VCs often focus on TAM and founder quality but overlook the dimension of urgency. A market with a critical, non-optional need (e.g., national security) is more attractive than a larger market with a discretionary solution, as demand is guaranteed and immediate.
Founders from non-traditional backgrounds or locations often feel they have more to prove. This "underdog" mentality can translate into a powerful and sustained motivation that drives them to overcome obstacles and outwork competitors.
The ability to adapt and "reset priors" in response to market changes is more valuable than a rigid, unchangeable vision. Great founders constantly check their beliefs against reality and iterate quickly, a trait many VCs undervalue compared to a compelling initial pitch.
The idea that "moats are dead" is a misinterpretation of a changing landscape. While a specific product feature might no longer be defensible, durable moats are re-emerging in other areas like proprietary data, unique distribution channels, or deeply ingrained platform ecosystems.
Companies in non-traditional tech hubs face less competition for talent from giants like Google or the "hot, shiny new company." This leads to higher employee loyalty and retention, which is a significant, often overlooked, advantage.
While specialists possess deep knowledge, it can create rigid beliefs that cause them to dismiss breakthrough ideas. Generalist investors, lacking this "expert" bias, are often more open-minded to unconventional approaches, allowing them to spot opportunities that specialists might overlook.
The timeframe to reach $1 billion in revenue has shrunk from years to potentially months. This acceleration in revenue velocity is a critical indicator of a company's potential scale and success, surpassing traditional year-over-year growth percentages.
Deciding whether to sell a portion of a private company holding is not just about liquidity. It should be treated as a new investment decision, asking: "Are we more confident that growth will continue or accelerate from here, or are there significant headwinds?"
An investor who started as an outsider often retains that perspective even after becoming an insider. This durable mindset fosters a habit of looking at opportunities with a fresh lens and questioning convention, which is a key source of alpha.