It firstly takes an informed view of where the world is going - whether it's technology trends, or its effects on consumer behavior or corporate behavior. Without that, you can only be a pure herd VC. This is even more true of early stage VC where the ideas are almost always pathbreaking and/or founders are chasing a sharp change in behavior or process. Late stage VC has a lot more data on founders and product adoption and competition to make a very different type of decision.
This is the set of lenses / framework that allows the VC to have a view of the potential of a new large market opportunity that doesn't exist today.
Then it comes to people. A VC firm's reputation drives what pipeline and founders get referred into the firm. So, building a network, demonstrating your value as a financial partner and beyond to founders and your portfolio companies, will determine which amazing founders come to you 7-8 years from today. So, one has to be incredibly patient and far-sighted in relationships and not see this as a transactional relationship. That takes a lot of wisdom and people skills.
This translates to courage to partner with the entrepreneurs and continuing to back them through ups and downs and know that only 30-40% of them grow into sizeable outcomes as an investor and to know that the rest can fail.
All of this sharpens your framework on why you pick a certain team with a passion to solve a particular problem.
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