VC with 5+ yrs of exp - AMA
Go for it :)
What do you love about being a VC?
What do you hate about being a VC?
UrbanLoss35
Stealth
2 years ago
It’s a privilege- you get to learn from the smartest people every day
You are never the good guy - always the evil powerful behemoth in a story
unemployed
Stealth
2 years ago
1. Please share a glimpse of a 'day in your life'?
2. Weekly hours / work life balance review
3. How did you know VC is the profession for you?
4. How much of your time goes into deal sourcing?
5. Should I do entrepreneurship after VC or the other way round?
UrbanLoss35
Stealth
2 years ago
1) Meeting with new founders, speaking with portfolio founders and some expert calls / org building
2) Lean market is 8 hrs, active deal days can tax you up to 12-16 hrs - it’s about getting shit done
3) I like talking to people, VC is a sales job and I like to think I’m okay at it :)
4) It’s not so much time that goes into it, anymore, everything is in place - much harder for the junior folks
5) There’s evidence of success in both, but I think builders should continue as builders, builders as VCs are not as effective
Holy shit. 12-16 hour days. I’ve never worked 10+ hours in my life maybe :( respect 🫡
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What measures do you have in place to ensure that the companies you invest in prioritize ethical practices and social responsibility, and how do you hold them accountable for any violations?
essentially something like gomechanic/byjus/ftx doesn’t happen again?
UrbanLoss35
Stealth
2 years ago
We have someone internally responsible for overseeing all investment numbers beyond the investment team itself - they give us an objective view of everything as such and flag these
A good mental exercise is when your portfolio company posts good numbers - just ask how are they driving it, what levers are working - something clicks there
Is it calm before the storm? are we going to see more layoffs/startups shutting shops?
reason- most of the companies did layoff to conserve cash, but soon they’ll run out of cash, and when all of these startups are in the market at same time to raise capital, the survival of fittest kicks in…
UrbanLoss35
Stealth
2 years ago
It’s already the storm imo - let us see where things go from here :)
During the bull market, how many of your investments were fomo driven vs thesis driven?
UrbanLoss35
Stealth
2 years ago
I would like to say none - but it would be very self-serving :)
I am sure all VCs think no investments they made are driven just by market sentiments, but you are playing in a field where valuations are getting spiked - now at a fund level, individual first check valuations do not end up making a large dent if it’s a unicorn so it’s fair
I think valuation wise everyone paid premiums in the bull market, but it can still all work out
Unless you did that Pre-IPO - then you might be in for getting royally screwed
Long term will you continue as a VC or will you also think of starting up?
UrbanLoss35
Stealth
2 years ago
Intend to continue as a VC, don’t have the stomach to startup as yet :)
It’s much much harder than what I would bargain for at this time in life
Georgebush
Stealth
2 years ago
How old are you?
1. What are some ways you value pre revenue startups?
2. Are there some firms which one should absolutely avoid if interested in applying to VCs?
3. What are some sectors that you personally think could see a spike in funding once things become normal?
No question from my end. Just appreciation for doing this insightful AMA. Thanks!
UrbanLoss35
Stealth
2 years ago
Cheers!
AchDonor29
Student
2 years ago
How to break into VC straight after undergrad?
UrbanLoss35
Stealth
2 years ago
I would recommend you don’t - get your grounding in consulting/startup/IB before breaking in, you’ll be grateful for the training you get there and will have a better career start in VC
Georgebush
Stealth
2 years ago
Is it okay if you invest in a startup once that ends up getting 7x valued more than what you invested by notable investors for follow-up rounds; learn tricks of the trade and then get into it? What are the chances of lending a good job and package at well reputed funds if you're a tier 2 college dropout?
UrbanLoss35
Stealth
2 years ago
There’s very few who have continued to stay humble
I’ll leave my own fund out of this - but the following people have good cred:
1) Shekhar Kirani - Accel
2) Manish Khetarpal - Waterbridge
3) Samir Sood - Venture Highway
4) Rajan Anandan - Sequoia
Have heard great things about Shekhar and Rajan from all corners. Not hard so much about the other two. Need to read more
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How do you evaluate founders at early/ideation “pre-pre-revenue stage? Do you have a bias against solo founders?
UrbanLoss35
Stealth
2 years ago
Try to understand why they’re doing what they’re doing, and what’s one reason they’ll succeed
UrbanLoss35
Stealth
2 years ago
I wish they had an option to pick better jury members - would have loved to see Sanjiv Bikhchandani, Binny Bansal, Vijay Shekhar Sharma
The current jury I think will get there, but some more mileages is needed
Also, the other problem I have is with re: romanticism of entrepreneurship, I think a lot of people are starting up without understanding what it means to start up and build a large business
They read Inc42 articles, watch Shark Tank, read success stories, listen to podcasts and then think okay this is why I will be a unicorn - hard work done 😓
UrbanLoss35
Stealth
2 years ago
It’s a function of the AUM of the fund - the larger the fund size, the fatter your paycheck
But if your fund is successful, the delayed payout of carried interest / share in firm’s profits compensates for all :)
What are your earnings per year, and how much of it depends on the success of the companies you're investing in?
UrbanLoss35
Stealth
2 years ago
50 LPA fixed + variable
A large portion of potential earnings is tied as part of the firm’s profits, think of it as ESOPs that vests over 4 yrs
So that money is received after the completion of the fund, which is 10-12 yrs :)
Success of portfolio founders is the difference between being a millionaire and being a billionaire as a VC
Georgebush
Stealth
2 years ago
Didn't quite catch the last line?
Achiever999
Stealth
2 years ago
How-to jump into vc journey? Suggestions
UrbanLoss35
Stealth
2 years ago
Depends on the stage at which you are trying to break in - requirements are different for each stage
But most critical question at all stages, can you help them invest in potential unicorn companies?
Your answer, and the moat of that is what determines your value and stage at which you can create that impact
Achiever999
Stealth
2 years ago
I guess pre seed or seed are something I am looking for but yeah apart from sales what is must have skills that a VC company looks for ?
Do you have high personal conviction on the deals your fund usually makes?
Does it happen that you don't have personal conviction on a start-up but still support it since it's in your funds thesis?
UrbanLoss35
Stealth
2 years ago
Someone has to champion the deal - it could be anyone in the fund
I look after specific sectors, so not necessarily all deals make sense to me but I hope my colleagues are doing well :p
Trid3nt
Stealth
2 years ago
What are your thoughts on Grapevine (this app) - would you consider putting a bet on it
UrbanLoss35
Stealth
2 years ago
Hahaha - depends on the target market, very unlikely for India alone
Also don’t know much about the founders as well - but giving them the benefit of doubt
If this is a India++ product, would invest
LivelyClue57
Stealth
2 years ago
Will you recommend joining VC to someone who’s eventual goal is to do a startup?
UrbanLoss35
Stealth
2 years ago
Not the best road, but it works fine - enough examples of ex-VC founders who are doing well :)
WoodenPub41
Stealth
2 years ago
There shouldn't be high salaries for you folks and much lower management fees to ensure only those who are completely aligned with the LPs are doing the job.
- from an LP in 2 VC funds
UrbanLoss35
Stealth
2 years ago
Appreciate you taking the time for this - I disagree on both the management fees and the salary
Would you rather appreciate a 30% carried interest? Or are just in general not aligned of the fees VCs charge - do you disagree with the value-added?
Idea is simple: 12 yr returns for other asset classes is not as high, if we are making that money we take a piece of it - not sure what challenge there is :)
db11235
Stealth
2 years ago
Please do some research before throwing such idiotic claims.
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nothing
Stealth
2 years ago
have you done a mba ?
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