To Young VCs: Stop Chasing Every Trend and Build Your Own Core Strength

I am writing this for young professionals in venture capital. The advice VCs repeat most often is that startup teams should focus, concentrate, cut back on nonessential activities, make trade-offs, and avoid chasing trends. Yet in actual investment decisions, VCs are often the ones chasing trends. Over my ten years in the industry, the hot sector has shifted almost every one or two years, sometimes returning under a new label: games, software, the internet, the sharing economy, cloud computing, Industry 4.0, AR/VR, big data, AI, blockchain, biotechnology, electric vehicles, the circular economy, carbon neutrality, cybersecurity, the metaverse, Web 3.0, and so on. Young people entering venture capital consequently chase a new trend almost every six months or year. I think it is worth settling down occasionally to consider your core strengths and what makes you irreplaceable. Rather than spending every day chasing a different trend, deliberately build your capabilities and resources in this industry. When you have accumulated enough, you may even be able to create a trend yourself. The advice VC professionals give founders applies equally to themselves: make trade-offs, understand your core capabilities, concentrate, and focus.