Paige Finn DohertyFounding Partner, Behind Genius · Founding Partner at Behind Genius Ventures

what is the hardest part of being an investor?

7 Jan 2024 · 1 min

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In this brief conversation, the speakers discuss the primary difficulty of venture investing: the inability to assess performance for 7–10 years, unlike operating roles where rapid A/B tests provide immediate feedback. They note that weeks without any new investments are common and can feel both normal and stressful. The lack of quick, measurable signals makes it emotionally challenging to gauge success. To navigate this uncertainty, the speakers emphasize the importance of a guiding belief system, intellectual curiosity, and an appreciation for the privilege of the investor role.

Chapters

One of the things that can be challenging as an investor is that you don't know if you're any good for like 7 to 10 years. Like, how do you hold that in your hand along with like operating a venture firm?
Oh, incredibly painfully. It's really hard. People ask me, you know, you made the switch from venture to operating back to venture. What is hardest now? You still won't know if you're any good for a decade. And unlike in operating where it's like, okay, you can, make a change to messaging to see what the conversion rate is. You can change the color or size of a button or a thing to see what the click-through rate, like none of that exists. And so you can have a, what you think is a great week and not write a single investment, which is most weeks. And that's a good week in venture. And that's just the hard part. And so I think it is rooted in just a, again, belief in an approach to working with people. Intellectual curiosity and a love for the privilege that is this job.