Description

Venture capital and ROI are inextricably linked. But what about ROR? 🤝

This was one of my favorite episodes to record so far. I sat down with Heston Berkman, Founder and Partner of Banter Capital to go over his many learnings over the past decade. Episode 023 of “New to Venture” is an absolute cheat code for those starting in VC. From the importance of relationships, to building a VC firm this episode has it all! 

Key Takeaways:

1️⃣ Your founder and VC circles change with time. You need to constantly refresh your networks, be open-minded, and not lean on pattern recognition.

2️⃣ It's okay to mess up, especially early in your VC career! You’re going to incorrectly prioritize your time. You're going to meet people who you think are legitimate, but aren’t. Your efforts may seem unproductive now, but VC is a long game. Your efforts just haven’t been productive YET. 

3️⃣ VC is an ROR (Return on Relationships) business. Sure, you can focus on ROI (Return on Investment), but relationships hold immeasurable potential. Meet as many people as possible!

4️⃣ Many, if not all VC careers go through a Trough of Disillusionment around 2-4 years in. Competition gets extremely fierce as you are no longer competing against junior folks. Your brain has become wired to be social and hyper-connected. Your early investments start to hit road bumps. By the time you finally figure out the best use of your time and make the right decisions, it’s way harder to find your footing in a traditional role. 

5️⃣ Get on the flight! If you’re excited about a founder and you’ve done all the research you possibly could, you better hop on a plane and get to know them in-person. Investing in early-stage founders is like a marriage. Make sure you get along as people, not just business partners.  

Timestamps:

(00:00) - Introductions

(02:04) - Heston’s love for boating

(08:00) - Is startup funding seasonal?

(10:18) - Heston’s time at First Round Capital

(12:23) - VC and founder circles change every 7 years

(15:14) - Working with First Round and Dorm Room Fund

(17:50) - What Heston looks for in founders

(21:23) - Transitioning into full-time venture

(25:25) - Best practices for those new to venture

(27:31) - Getting operating experience

(31:31) - Heston’s first angel check

(33:00) - Heston meets an NFL football player

(36:25) - Partner track vs. raising your own fund

(39:23) - The origins of “Banter” capital

(41:23) - What Heston looks for in an investor

(44:58) - Ceremonial Final Qs