Decomposing Venture: Language & Culture
Investor Liaison Hannah Savage explains VC residency and rewards via VC linguistic fluency and cultural awareness
Rules
In venture capital (VC), knowing the numbers isn’t enough. Knowing the language, the customs, and the culture that governs the “land” may directly impact who gets taken seriously and who gets funded. VC is a world with its own rules — and if visitors don't learn them, they may end up perpetually on the outside looking in.
Profession
VC is more than an industry and an asset class that some sort of financial matrix unlocks; it's a distinct profession with its own intricate culture, specialized language, and unique set of expectations. Those who stumble into its vast, often opaque landscape quickly learn that without help, it’s easy to get lost or left behind. VCs won’t take seriously those who can’t speak the language or demonstrate a working knowledge of the culture. In venture, both language and culture may be barriers.
The following three personas tend to frequent the VC ecosystem:
Traditionalist
The first persona is the Traditionalist (i.e., natives). This individual typically comes from a background in finance, investment banking, consulting, or another form of private equity. They are seen by some as the native speakers of the VC language and the primary driving force behind much of modern VC's norms and gate-keeping.
More than speaking VC fluently, Traditionalists embody the VC culture. They understand the subtle nuances of power dynamics, the importance of pedigree (both their own and that of the founders they back), and the unwritten rules of the game. They may value analysis, a data-driven approach, reports, referrals, and a certain level of professional detachment. They may also sense when someone isn't "from around here," picking up on subtle missteps in terminology, approach, or even demeanor. Traditionalists tend to act as the gatekeepers of VC, consciously or unconsciously perpetuating certain norms and values. While their VC upbringing is obvious, they may be resistant to truly unique ideas that fall outside of their pattern recognition.
Operator
The second persona is the Operator (i.e., immersive or resistant). Operators may enter the VC world after achieving success as founders or as notable team members. They've earned their chops and credentials through building and scaling companies, often ending in a successful exit (i.e., IPO or acquisition). They understand the founder journey better than many because they've lived it and succeeded at it. Now, in some way or another, they find themselves on the other side of the table, making investments in founders embarking on that same journey. Operators bring real-world operational experience, a deep understanding of market dynamics, and a strong network within the startup ecosystem. The Operator’s adaptation and view of VC culture may vary significantly and impact their own long-term success as VCs.
Immersive Operator: Some choose to fully immerse in VC. They do so by learning the language, adapting to the culture, and becoming fluent participants in the profession. They build relationships with Traditionalists, attend industry events, and become immersive operators in the world of VC. They understand that while their founder experience is a valuable asset, it's not enough on its own to succeed as a VC. They strive to bridge the gap between the founder and investor worlds, gaining credibility and influence within the VC community.
Resistant Operator: Some participate with resistance in VC. These may view VC as “foreign” and too transactional, like someone assigned to a job in another country who refuses to learn the local language, sticks mainly to associating with fellow expats, and counts down the days until they return home. These resistant operators may never fully belong in the VC community because they never fully buy in, potentially limiting their access to deals and exponential returns due to lacking the ability to effectively and fluently communicate with other VCs in a culturally appropriate way. However, they may also bring a valuable contrarian perspective, challenging the status quo and advocating for founders in a way that Traditionalists might not. Their resistance may, paradoxically, lead to evolution of the VC culture, forcing it to be more founder-friendly.
Other
The third persona is the Other. They may begin as more of an outsider. They were neither born into the VC world nor have they had some notable startup experience and they probably didn't follow the most conventional paths to VC either. However, similar to an expat who chooses to move to a new country and fully immerse themselves (i.e., Immersive Operator), these Others may flourish as VCs. They dedicate themselves to learning the VC language and culture, adapting to the customs, and integrating into the community as professionals—not attempting to replicate their previous environments, but establishing a new identity and life within VC. While traditionalists might eventually discover these Others as “non-natives” if they speak at length on certain VC topics, fluency, not origin, garners respect. Over time, the Others navigate the VC ecosystem well, building trust not because of where they started or studied, but because they chose to become skillful VC practitioners by becoming linguistically fluent and culturally adept.
Conclusion
Regardless of origin story, success in VC demands more than technical ability and head knowledge; it requires VC linguistic fluency and cultural awareness. The sooner perspectives shift from seeing VC as merely a job, or a task to complete for funding as a founder, to treating VC like a country to move to and reside in with a new language and culture to master, the faster one may gain acceptance and residency with rewards. PS: Stay tuned as the series on Porter's 5 Forces returns to wrap up with Force Five: Competitive Rivalry.
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