By Dilsher Dhupia | 14 November 2024
To: Aspiring junior VCs
CC: My family
As someone who gets regular LinkedIn messages from aspiring VCs and questions from my family and friends, I thought it’d be worth shedding some light on what a junior venture capitalist (VC) actually does. The role isn’t chats over coffee with founders and a few pitch deck reviews; it's a mixed bag that juggles networking, research, and brand building. Here’s the breakdown of where and how I devote my energy working as a senior analyst as part of the investment team.
Writing Investment Theses (10%)
Contrary to popular belief, we don’t invest in companies based on vibes and/or FOMO. Crafting an investment thesis is a core part of our job as we dig into market trends and evaluate competitive landscapes. Delving into the nuances of a rapidly evolving sector, helps us unearth promising avenues for investment, separating the genuine potential from the noise. This rigorous analysis empowers us to make informed decisions and capitalise on the true value propositions within a sector of interest.
An example of our insights at work: we crafted a comprehensive SaaS economy thesis that dives into emerging opportunities within this burgeoning sector.
Deal Sourcing (20%)
Deal sourcing is our bread and better, it’s essentially hunting season year-round, with a healthy mix of inbound and outbound lead generation. I’m constantly scouting LinkedIn, attending pitch events, and sliding into founder DMs. The goal? Spotting startups before they hit everyone else’s radar.
Sourcing is as much about building relationships as it is about evaluating ideas. And if you’re doing it right, you’ll not only meet founders early but also keep tabs on their growth.
What helps me stand out is the ability to build a network that feeds itself — one founder often introduces me to another, creating a flow of opportunities. Even when a deal isn’t right for us, I keep founders in mind for other funds where they might be a fit. Contrary to popular belief, if another fund closes the deal, it’s not competition; it's momentum for the whole industry.
Deal Evaluation and Closing (35%)
Once a deal seems promising, the real work begins. Junior VCs play detective here, scrutinising every metric from growth rate to customer retention (when applicable at an early stage), else you can find me delving deep into a market trying to validate a problem statement. This phase isn’t just about finding flaws but about evaluating if there’s a strategic fit. Preparing for the Investment Committee (IC) is like cramming for a final exam. You need to be able to sell the deal to your team members, addressing every possible question.
Interestingly, unanimous 'yes' or 'no' decisions don’t usually lead to the best outcomes. The real value lies in the diversity of perspectives during IC discussions — the favourite part of my job. Debriefs are rich with differing viewpoints, pushing us to consider angles we might have overlooked, ultimately sharpening our investment decisions.
If the IC gives the green light, we help bridge the gap between startup founders and lawyers, translating legal jargon and making sure the deal gets over the finish line. Special shoutout to my patient friends in our fund operations team without whom this step would take 60% of my time.
Portfolio Management (15%)
Once the ink is dry, the real relationship begins. Portfolio management means keeping tabs on your investments, making introductions, and offering support as startups scale. It’s a hands-on role, especially when founders need advice or resources. You’re not running the company, but you’re the first call when something’s broken — and sometimes when it’s thriving.
I’ve come to respect that my role isn’t that of an operator; empathy for the founder’s challenges is key, and effective support often means asking the right questions, not giving directives. Building trust through thoughtful communication and preparation allows me to add real value — whether in capital, connections, or strategic guidance.
Fund Brand Building and Networking (20%)
Brand building is an underrated but crucial part of the job. This means representing your firm at events, writing articles, and, yes, maintaining a LinkedIn profile that suggests you’re “in the know.” Networking also demands a surprising amount of time. It’s not just about connecting with founders but building rapport with all other stakeholders in this ecosystem. These connections become deal sources, portfolio assets, and the people who’ll back you when you lead your own deals someday.
To sum it up, the job is not just about the big wins but more about grinding through the details that make big wins possible. It’s relationship-based, hustle-driven, and occasionally patience-testing—perfect for anyone who thrives in organised chaos and knows how to be everywhere at once.