Pricey SaaStr: What Do VCs Do When They Aren’t Sourcing or Closing New Offers?
VCs don’t spend most of their time engaged on new offers.
They spend most of their time on present investments.
Think about you’re a VC on 9 boards of administrators:
- Board conferences alone can take 20% or extra of your time. Every board assembly takes a half day together with journey, prep, and so forth. 9 boards x 8 conferences a 12 months x 0.5 days = 36 enterprise days proper there. Many seasoned VCs may be on as many as 20 boards. At that time, it turns into nearly all of your time.
- Monday companion conferences can take 20% of your time proper there. Most of Mondays are devoted to portfolio overview, and pitches from different firms that aren’t even yours. It takes loads of dialogue and time to run a partnership with > 2 or 3 companions. Plenty of time.
- Fundraising can take loads of time, though not on a regular basis. However in case you aren’t a High Fund, you possibly can spend an enormous quantity of your time elevating the following fund.
- Coping with your Canines can take 10% of your time (and 20%+ of your power and psychological bandwidth) proper there. Those slowly taking place the drain, doing drama-filled acqui-hires, that may’t pull off the following spherical, with quitting founders and failing CEOs — they take so, so, a lot time. And so many excessive drama calls and conferences. And in case you have a ton of cash right into a Canine, it may be a career-ending drama for a GP.
- Working with CEOs, recruiting on your present investments, talking, occasions, and so forth. can simply take one other 20% of your time. Simply doing VP interviews alone takes loads of time in case you do loads of them.
Greatest case, that leaves 30-35% of your time to take a look at new investments. Greatest case.
What does a typical day within the lifetime of a VC appear to be?
(board assembly pic from here)