Hard to Evaluate Performance, Making it Hard to Establish a Reputation

Performance evaluation, at a partner and firm level, is really hard to do in this industry, short of just waiting for funds to return. There’s no objective way of judging performance until the full fund has returned because a single investment could turn a fund from a loser to a huge winner, and because just putting money to work doesn’t mean you’re doing it well. As a result, trying to establish a reputation as a new firm is tough, and figuring out where to put your money as an LP is equally hard.

Getting Little Guidance; Up to Me to Solve Problems

Most important thing to know coming into this sort of business is how little guidance there is from the folks you work with. This is pretty typical of venture from what I’ve heard in speaking with others, and it’s definitely the case at [my firm]. I meet with the partners once a week, on my own initiative, to talk through what I’m working on, and other than that, it’s up to me to solve problems and get work done. It’s been quite refreshing, but you’ve definitely got to push yourself to be productive.