The Balance of Optimism and Discernment in VC

Successful venture capital investing requires a delicate balance between optimism and a critical evaluation of potential investments. Former entrepreneurs often bring a positive outlook to the table, seeing the best in every opportunity, but this can lead to an overextension in investments. A more effective approach is to exercise discernment and invest only when truly excited about a deal, as this reduces the risk of poor investments that can dilute returns. Focusing on a few high-potential deals each year, particularly at the Series A level, is essential for becoming a top-performing VC rather than trying to chase numerous opportunities with less promising outcomes.