VC Lessons From A VC Founder and Professor at Columbia Business School | Angela Lee of 37 Angels
How to Succeed in Venture Capital and Entrepreneurship: Insights from Angela Lee
Introduction
The world of venture capital and entrepreneurship is dynamic, complex, and ever-evolving. In a recent podcast, Angela Lee, a professor at Columbia Business School and founder of 37 Angels, shared her invaluable insights into this fascinating industry. This article distills her key points, offering a roadmap for aspiring venture capitalists and entrepreneurs alike.
What Does Angela Lee Do at Columbia Business School?
Angela Lee wears two significant hats at Columbia Business School. She is a professor teaching venture capital classes and also serves as the faculty director for the Lang Center for Entrepreneurship.
What Venture Capital Courses Does Angela Lee Teach?
Angela teaches three main courses:
- Foundations of Venture Capital: This course teaches students how to deal with startups and what investors look for.
- Building Your Venture Capital Investment Thesis: This course helps students dive deep into a sector and develop expertise.
- Launching and Managing: This course, still being refined, focuses on the practical aspects of running and managing a venture capital fund.
What is the Lang Center for Entrepreneurship?
The Lang Center focuses on three types of students and alumni:
- Those who want to launch a company.
- Those who want to invest in a company.
- Those who want to join a startup or do corporate innovation.
The center offers curriculum, programming, and mentorship to support these paths both during and after their time at Columbia.
Why is Understanding Both Sides Important?
Many students in Angela’s venture capital courses aspire to be founders. Understanding how investors think and what they look for is invaluable for future entrepreneurs. Angela emphasizes empathy, knowing what the other side is thinking, as a crucial life skill.
What Makes a Good Venture Capitalist?
Angela believes that being a good venture capitalist is more about "who" than "what." The quality of your network and being a good person ("be a good egg") are crucial. Being a jerk can harm your business and relationships in the long run.
Why is Being a Good Person Important in Venture Capital?
The venture capital industry has long feedback cycles. Being unethical or unpleasant can eventually come back to bite you. It's essential to build an authentic and thoughtful network, as reputation and relationships are everything in this field.
How Can You Build a High-Quality Network?
Angela offers three pieces of advice:
- Ask for Help: Be specific about what you need.
- Make It Easy for People to Help You: Provide clear, actionable requests.
- Give More Than You Take: Add value to your network without expecting immediate returns.
How to Balance Building a Network with Fair Access?
Angela acknowledges the challenge of balancing network building with fair access. She advises being proactive, specific, and intentional in your asks, and giving back to your network.
The Role of Education in Venture Capital
Education is crucial. Angela shares her journey of experimenting with various teaching methods and eventually focusing on long-form content for MBA students.
What Unique Offerings Does Columbia Business School Have?
Columbia’s venture capital program offers unparalleled access to a dense network of alumni in New York City. They are also launching a new two-year venture capital program that pairs students with funds, allowing them to gain hands-on experience in investment decision-making.
What is 37 Angels?
Angela founded 37 Angels, an investment network and bootcamp to teach people how to become angel investors and venture capitalists. They review 2,500 companies annually and invest in about 10, focusing on diverse investors.
How to Choose the Right Angel Network?
Consider how much control you want over your investments. Angel networks offer curated deal flow and the benefit of a network, while angel funds offer more diversification but less autonomy.
Why Should Entrepreneurs Present to 37 Angels?
Efficiency and the power of their network. They guarantee a response within four weeks and actively help founders with introductions and resources.
What Makes a Good Investor?
Angela emphasizes the importance of education and continuous learning. Good investors are those who are knowledgeable, empathetic, and have a strong network.
FAQ
Q: What are the key qualities of a successful venture capitalist?
A: Empathy, a high-quality network, and being a good person are crucial qualities.
Q: How can I build a strong network in venture capital?
A: Be specific in your requests, make it easy for others to help you, and give more than you take.
Q: What unique opportunities does Columbia Business School offer for aspiring VCs?
A: Columbia offers a dense alumni network, experiential learning opportunities, and a new venture capital program with hands-on investment experience.
Q: Why should I consider joining 37 Angels as an investor or entrepreneur?
A: 37 Angels offers efficient processes, a supportive network, and educational opportunities for new investors.
Conclusion
Angela Lee's insights offer a comprehensive guide for anyone looking to succeed in venture capital and entrepreneurship. By focusing on empathy, building a high-quality network, and continuous learning, aspiring VCs and entrepreneurs can navigate the complex landscape of this dynamic industry. For more resources and to listen to more podcasts, visit Interplay's Blog. If you’re looking for an incubator, check out Interplay's Incubator.