Recently, I had the privilege of attending a panel at the Women's VC Summit, where insights flowed as freely as the coffee. The discussion centered on not just surviving but thriving in the venture capital ecosystem as a Limited Partner (LP). Here are some golden nuggets I took away:
The Power of Underutilized LPACs:Â It's time we leverage LP Advisory Committees not just for governance but as a strategic asset in steering investments towards diversity and innovation.
Angel Investing as a Credential:Â Your angel investing track record is not just a badge of honor; it's a testament to your knack for spotting and nurturing potential. Showcase it, and let it open doors to more significant, impactful opportunities.
Staying True Amidst the Storm: In an era of rapid change, clinging to your investment thesis isn't stubbornness—it's a beacon that guides your investment philosophy, ensuring you stay the course when the waters get rough.
The Six-Figure Sweet Spot:Â The roles within our firms aren't just jobs; they're career-defining positions that command salaries in the six figures. It's a reflection of the value and impact we bring to the table.
Dialogue with GPs:Â Engaging General Partners (GPs) in conversations about what matters most to them isn't just polite; it's a strategic move that ensures alignment of interests and a deeper understanding of investment philosophies.
The Co-Investment Conundrum:Â Co-investment opportunities are not just perks; they're a window into direct investment experiences, offering a closer look at operational intricacies and strategic decisions.
Navigating Underperformance:Â The decision to part ways with a manager isn't easy, but it's necessary. Underperformance is a call to action, urging us to re-evaluate, reassess, and realign.
Reunderwriting in Times of Change:Â Team changes aren't just red flags; they're opportunities to reunderwrite, reassess, and reaffirm our commitment, especially beneficial for emerging managers with the agility to stay close to their compact portfolios.
These insights are more than just takeaways; they're a roadmap for us as LPs to navigate the evolving landscape of venture capital, ensuring we remain not just participants but pioneers in shaping the future of innovation.