Successful VC’s “Stay Fresh”

Bill Warner Thursday, January 28, 2010

I just read an amazingly refreshing perspective by Greg Gretsch in PE HUB. It’s all about what it takes to be a successful VC. It is counter-intuitive, but makes a lot of sense.

A Fresh View of a Successful VC

With only ten years as a venture capitalist, with some very successful investments and lucrative exits, Gretsch is worried about becoming stale and out of date. Heck, most VC’s with his record of success would be riding high, living the good life, and pontificating to the venture community about his formula for success.

But no! Gretsch doesn’t think that the longer you’re a VC, the more skilled you become in picking winners. Instead, he theorizes that if you’re a VC for more than 10 years, you’re likely to grow worse at your job over time. And, he has some data that point out that this may very well be true. Even with spotty verification, Gretsch takes this seriously. Here’s why:

  • The older a VC becomes, the further out of touch with new technologies they become
  • As they move up the professional pyramid, their network actually shrinks because they are working with fewer and fewer people
  • They are not meeting the new people that are really bringing innovation to the market; as a result they miss trend setting ideas
  • They are stuck in looking at existing market sectors for new opportunities, missing new and significant market changes
  • Family demands increase as they get married and have children

How Do VC’s “Freshen Up?”

Gretsch’s simple advice is to “remain humble, keep your attitude in check, and stay hungry.” The hard part is to remember how that all feels. Here’s his formual, which might apply to many of us in lots of different lines of work:

  • Increase the number of relevant technologies with which you are familiar
  • Follow the leading industry analysts to learn what they are thinking
  • Build relationships with the next-generation of successful investors and technologists
  • Reach out to the younger entrepreneur and learn from their fresh ideas
  • Always be better at what you do

I think Gretsch really believes this and will remain on top in the VC community for another decade.

Filed Under: Angel Investment, Financing a Company, Business Strategy and Planning, Starting a Business



Bill Warner is the Managing Partner of Paladin and Associates, a business consulting firm in the Research Triangle Park area of central North Carolina, and is the Chairman of the Triangle Accredited Capital Forum, an angel investor network with over one hundred members throughout the southeast.

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