First, while many investors flamboyantly refer to themselves as venture capital investors, few deploy the risk commensurate with it. Deal collusion, excessive syndication, and deal fragmentation have turned the exploration and exploitation of innovation in Silicon Valley overwhelmingly subprime, incompatible with finding outliers. False positives and false negatives abound.
So, the key to becoming a successful venture investor in Silicon Valley is not to join the aforementioned rat race of venture capital’s continued sub-priming, which will never produce consistent venture-style returns. Instead, one must deploy the inverse by unleashing the pursuit of prime risk derived from foresight (from a new and higher normalization of truth) aligned with outliers.
Such pursuit (not unlike DST, Yuri Milner) requires a minimum of $250M fund, a presence on or around Sand Hill Road, and the wherewithal of foresight as the foremost competitive differentiation of an investor to attract outliers. The competition on subprime deals regurgitated by the narrow thesis of subprime venture capital may be fierce, quite the opposite of the pursuit of prime ready to change the world.
Feel free to contact me to discuss further.