Leo Tolstoy famously wrote, 'All happy families are alike; each unhappy family is unhappy in its own way.' A similar sentiment seems to apply to venture firms, as highlighted in Lux Capital's Q2 2024 letter (https://www.luxcapital.com/content/lux-lp-letter-2024q2]), which predicted that 30-50% of firms could shut down. Unsurprisingly, it's happening.
At the heart of this upheaval lies a critical, often overlooked skill: selling. Many founders and professionals who rise through the finance ranks lack formal training in sales—or simply dislike it. Rejection is emotionally difficult. People strongly dislike it. Yet, it’s an indispensable competency. Consider Steve Jobs: yes, he was notoriously difficult to work with, but he was also a masterful salesperson. While Apple built great products, Jobs was never afraid to sell their vision and value. He was unafraid of rejection. He had done that emotional work already.
Venture capital, at its core, is a sales-driven industry. The firms and individuals who endure this 'culling of the herd' will likely be those who not only understand the art of selling but also embrace it wholeheartedly. They will be the ones who have done that difficult emotional work.
TRUE, an amazing piece! Thank you ❤️🔥
Very interesting, thanks for the post :)
This tracks stunningly well.
Leo Tolstoy famously wrote, 'All happy families are alike; each unhappy family is unhappy in its own way.' A similar sentiment seems to apply to venture firms, as highlighted in Lux Capital's Q2 2024 letter (https://www.luxcapital.com/content/lux-lp-letter-2024q2]), which predicted that 30-50% of firms could shut down. Unsurprisingly, it's happening.
At the heart of this upheaval lies a critical, often overlooked skill: selling. Many founders and professionals who rise through the finance ranks lack formal training in sales—or simply dislike it. Rejection is emotionally difficult. People strongly dislike it. Yet, it’s an indispensable competency. Consider Steve Jobs: yes, he was notoriously difficult to work with, but he was also a masterful salesperson. While Apple built great products, Jobs was never afraid to sell their vision and value. He was unafraid of rejection. He had done that emotional work already.
Venture capital, at its core, is a sales-driven industry. The firms and individuals who endure this 'culling of the herd' will likely be those who not only understand the art of selling but also embrace it wholeheartedly. They will be the ones who have done that difficult emotional work.
TRUTH
Nice piece - thanks for sharing 🌞