Streaming Consciousness: When the game changes
Why 90s NBA is to the 2010s VC ecosystem as the 2020s NBA is to the 2020s VC ecosystem.
Why 90s NBA is to the 2010s VC ecosystem as the 2020s NBA is to the 2020s VC ecosystem.
Last week, I had a great conversation with a friend who had just transitioned from a tech operating role to an early-stage investor role. When I asked him how it feels to be in the venture: he stressed that he felt very fortunate and that it was an intriguing time to enter the venture capital. He is at an established early-stage firm, and I asked if the current funding environment has caused his partnership to shift their strategy or not.
He told me the best quote I heard all week. He said his partners have stressed that you have to “play the game that is on the field and stop complaining about the way the game was played.” It made me think about sports today — in particular basketball. There have been quotes from old-school hoopers that today’s game is too soft, too nerdy (i.e., analytics), and to some extent lacks heart (not much defense). Like Candance Parker taught Shaq, I feel the NBA has changed with more skill, athleticism, and team strategy.
The venture ecosystem has had its shift. It’s changing with an infusion of more capital (more competition) and changes in diligence process routines (i.e., meeting online versus in person). If I’m honest, these changes haven’t been wildly accepted by the industry with shifts in strategy. But I’ve many respond with complaints and frustration (I include myself). My friend’s quote reminded me that I have two options with a changing market: 1) I can sit on the sideline and complain, or 2) I can shift my strategy in a manner that leverages my strengths to win at this new iteration of the VC game. I’m too competitive not to do the latter.