Welcome to this new five-part series on the qualities of a top venture capitalist based on insights from current and former partners at Sequoia, Benchmark, Kleiner Perkins, and a16z. 

I will publish blog posts and podcast episodes once or twice a week, split into four parts, with one unique bonus essay I’ll reveal later. We will look at the following qualities of a good VC:

1. Sourcing

2. Picking

3. Winning the deal / Being a good partner / Adding value

4. Optimal Fund Size / Liquidity Strategies (when to sell)

This will be a must-read for anyone interested in

1. The different aspects of running a venture capital fund

2. What traits make a good venture capitalist

3. Why LPs fund certain venture capitalists 

4. Why founders pick certain venture capitalists

5. How you as a founder should screen a venture capitalist

So, let’s get into part one: Sourcing. 

Sourcing is the oxygen that gives life to a venture capital fund. Without it, the fund cannot exist.

For those who don’t know, sourcing is the act of finding entrepreneurs to meet with to consider investing in. It can come via inbound, as in the entrepreneur reaching out to the venture capitalist due to his or her reputation, network, or content he or she published, or it can come via outbound, as in the venture capitalists reaching out to entrepreneurs to meet. 

Effective sourcing is possible if the VC is curious, has the hustle to build a network, and puts out content as a beacon for great entrepreneurs to come to them. In this episode, we’ll discuss why these three concepts are vital for a venture capitalist, backed by quotes from greats such as John Doerr, Bill Gurley, and Jeff Jordan, among others. 

Chapters:

1. Curiosity: 04:01

2. Network: 12:36

3. Produce Content: 24:10

More All Things VC:

To read this podcast in an abbreviated format, check out the substack: All Things VC. It has the same content as the podcast, just a little more direct with less improv.

To read more about what makes a top VC with quotes from firms like Sequoia, Benchmark, Kleiner Perkins, a16z, Initialized Capital, and Accel, head to allthingsvc.blog.

You can also follow me on X @Justin_Pryor_ for more information I post throughout the week based on what I discussed in this episode. Likewise, you can find All Things VC on YouTube to see clips of these episodes separated by each major topic I discuss.