VCSS: Year in review + Valerie Shen of G2 Venture Partners | E1641 | Summary and Q&A

TL;DR

Molly discusses her first year as a venture capitalist in climate tech and highlights key learnings and surprises in the industry.

Key Insights

• 👨‍💼 Molly's first year as a venture capitalist in climate tech has been filled with diverse founders, ideas, and business models.
• 🤔 Venture capitalists need to adopt a mindset of thinking in bets and evaluating the mathematical aspects of ownership percentage, valuation, and potential returns.
• ☄️ Patience and discipline are crucial qualities for successful venture capitalists, particularly when it comes to conducting thorough due diligence and making informed investment decisions.
• 👨‍💼 Founders in the climate tech industry often have unique approaches to constructing their businesses, and VCs can provide guidance and mentorship to help them navigate challenges and achieve success.
• 🥺 The venture capital landscape in climate tech is evolving rapidly, with increasing interest and investment in the industry, leading to more opportunities for both investors and entrepreneurs.

Transcript

okay everybody Welcome to the final Sunday edition of this week in startups for 2022 and we thought it would be an interesting thing to do for the VC Sunday school segment to have Molly talk about her first year as a venture capitalist yeah it happened uh we of course also a thing that was pioneered as part of my first year here at launch this week... Read More

Questions & Answers

Q: What aspects of venture capitalism did Molly find most enjoyable in her first year?

Molly finds the ever-changing nature of the job and the opportunity to engage with a wide array of founders and ideas on a daily basis to be the most exciting aspects of venture capitalism. She appreciates the constant learning and the diverse perspectives she encounters in her role.

Q: How does Molly compare venture capitalism to her previous roles as a commentator, host, and journalist?

Molly highlights the similarity between venture capitalism and journalism in terms of the excitement of engaging with different ideas and learning new things. However, she notes that venture capitalism is less cynical and rooted in skepticism compared to journalism, allowing her to embrace a more positive and supportive approach when evaluating founders and ideas.

Q: What was Molly's biggest surprise during her first year as a venture capitalist?

Molly was surprised by the extent to which early-stage founders are often "winging it" and constructing their businesses in unique ways. She learned that not every founder possesses the same level of expertise in areas like data rooms, accounting, or understanding business metrics, and she recognized the importance of providing guidance and mentorship as a VC.

Q: How does Molly approach the challenge of evaluating business models in the climate tech industry?

Molly emphasizes the significance of thinking in math and evaluating the fundamental business metrics of startups, such as total addressable market, pricing, and cost structures. She acknowledges the role of business models, market size, and founder capabilities in determining whether a company is venture fundable or not.

Summary & Key Takeaways

• Molly reflects on her first year as a venture capitalist and highlights the diverse range of founders, ideas, and business models she has encountered in the climate tech industry.

• She shares her surprise at the amount of variety and uniqueness in the ways that founders construct their businesses, as well as the level of expertise and knowledge she has gained from engaging in conversations with entrepreneurs.

• Molly emphasizes the importance of thinking in bets and evaluating the math behind ownership percentage, valuation, and potential return in investment decisions.

• She also explores the need for patience and discipline in the venture capital industry, as well as the role of VCs in guiding and mentoring founders throughout their entrepreneurial journey.