It's hard to believe that almost two years have passed since we embarked on our journey with Tundra Ventures, venturing into the dynamic world of Venture Capital.
These past two years have been a paradoxical mix of the longest and most challenging days of my professional career, yet also the most enjoyable.
This duality of experience is how I know that Tundra Ventures is not just where I want to be but where I need to be.
Starting a venture fund in my mid-thirties was never part of my grand plan. I had never imagined myself pursuing this path. But here I am, and with every passing day, I become more convinced that Tundra Ventures is the ideal place for me.
At this point in my life, I frequently ask myself, "Is this really what I want to do?" Without hesitation, my answer is always a resounding yes. This might appear as self-doubt, but quite the opposite; it's a practice I believe everyone should adopt periodically. We often become entangled in the daily grind and forget to assess whether our actions align with our goals and values.
Reflecting on the past 23 months of determined effort and perseverance, I thought sharing some key takeaways from this journey would be valuable.
Before diving further into my learnings, I'll start with a disclaimer that these are my thoughts alone and not those of my partners or other EMs doing the hard work.
Starting a Venture Fund Is Like Starting a Startup:
If you doubt this, you're mistaken. Nothing is guaranteed, and your accomplishments alone won't suffice. You need to demonstrate your abilities to potential investors convincingly. Moreover, after securing their investments, you must prove to founders that your fund is right for them.
No Shortcuts Exist - Differentiate Yourself:
Differentiation is essential in a world where every EM looks smart, has impressive credentials, and claims to have excellent networks. The fact is that network, skills, and experience are table stakes. The magic is in your ability to blend those things and provide actual value to your founders and, in turn, your LPs in the form of ROI. You must find unique ways to stand out. You, me, and everyone else have the same talking points, and all else being equal, you just get lumped into one big unidentifiable bucket of prospects.
Develop Resilience and Embrace Rejection:
Thick skin is a necessity in the world of venture capital. Rejection is part of the journey, and you'll encounter it more often than expected. It's crucial to learn from each rejection and keep pushing forward.
Learn to enjoy the wins (even the small ones):
I need to remind myself of this one dozens of times a week. It’s so easy to look past the wins and try to figure out the following problem. You need to take the time to use the good news to recharge your battery. Otherwise, you’ll burn out. Full stop.
Cultivate and Expand Your Network:
Regardless of how extensive your network may be, strive to improve it. Your network is one of your most valuable assets, and nurturing it can open doors to valuable opportunities.
Financial Scrappiness Is a Must:
Managing finances efficiently is not an option; it's a requirement. Being scrappy with your resources and making every dollar count is vital for the success of your venture fund. This whole notion that being a VC is ultra-lucrative is such a falsehood. Yes, is there a world where being a VC has great financial returns? Absolutely. There is also a world where you pour a lot of TIME and MONEY into an endeavor with subpar results.
Embrace Multifaceted Responsibilities:
As an emerging manager, you'll wear many hats simultaneously—business development, sales, marketing, recruiting, finance, and more. Be prepared to handle a wide array of responsibilities. Have the mentality that you’ll take the trash out in the morning and meet that high-profile prospective LP in the evenings. Have a full range of capabilities and become comfortable and willing to learn how to figure shit out.
Partner(s) or Solo? Think Carefully:
The decision to have a partner or go it alone is crucial. If you choose to partner, take your time to find the right fit. If you go solo, prepare for intensified challenges in your venture. There isn’t a right or wrong answer, but don’t go one way or another because you see someone else do it a particular way.
Nurture a Robust Support Network - Professionally and Personally:
Building a venture fund can be an isolating journey at times, and having a solid support network is invaluable. Professionally, seek mentors, advisors, and peers in the venture capital industry who can provide guidance, share insights, and offer a fresh perspective on your challenges. Personal support is equally crucial; your friends and family can provide emotional sustenance during the demanding moments of your venture. Balancing professional and personal support will help you navigate the highs and lows of the emerging manager's path with resilience and confidence.
Whatever Time You Expect It to Take and Double It:
The cliched “It’s a Marathon” analogy: Investment from your LPs doesn’t happen on your schedule as an emerging fund; you are at their mercy in many ways. Just expect it to take a long time and then a bit longer. Patience is critical.
Expect the Unexpected:
When we started Tundra Ventures, we didn’t anticipate banks going under. Nor did we predict that rates would go from near 0% in Nov of 2021 to the present day 5% (and climbing?). There is always a surprise right around the corner, the better you can do to be flexible and on your toes, the better off you’ll be.
Tundra Ventures has gone through many ups and downs, but overall, it has been a valuable and transformative experience. Emerging managers face many challenges and uncertainties but also have a fantastic opportunity in front of them. These past two years have strengthened my passion for this field, and I am eager to see how Tundra Ventures will continue to grow and thrive in the ever-evolving landscape of venture capital.
Suppose you are considering a career in this field. In that case, it is essential to research, ask questions, make meaningful connections, discover your strengths, and, most importantly, wake up each day and ask yourself if this is what you genuinely want to do with your life. It may not be the right time if the answer is not a resounding yes.
With all that being said, I wouldn't trade it in for anything else. It's where I want to be; I can't imagine doing anything else. The signal has never been stronger.
So what’s next? We continue to build the foundation brick by brick. There are no shortcuts. So, we will continue to meet prospective LPs, founders, and many other great people. I can’t wait to see what the next trip around the sun brings.
If you made it this far and still have questions, feel free to reach out any time. My email is adam@tundravc.com, and the inbox is always open.