It’s taken me a little time to get my final installment out for this blog series.  The truth is, when I titled this “Top 3 Temptations” I only had 2 temptations really in mind.  I figured “3” sounded like a better title, but I don’t really have a third temptation that I feel as strongly about as the first two.

Instead, I think some of my other temptations are a little more idiosyncratic and not as well developed.  So rather than just giving one uber temptation, here are a few other small ones:

#3: Being too impatient with your career. Specifically, being impatient about getting deals done (which I’ve discussed) and getting promoted.  As I’ve discussed, regardless of whether you are an associate, a principal, or a young partner, you are basically a “bad” version of the best investors our there.  So what’s the rush?  It’s better to be a great investor at the right time, than getting promoted one year earlier and flaming out.  Plus, in a partnership, it’s just annoying to be the impatient junior guy.

#4: Getting lost in hype cycles. Young VC’s haven’t necessarily seen what happens in boom and bust cycles.  So it’s easy to forget your fundamentals and get lost with irrational exuberance or irrational negativity.

#5. Turning every interaction into a business opportunity. Venture isn’t really a job, it’s a lifestyle.  I’m always thinking about interesting ideas, and ways to help our portfolio.  As a result, it’s easy to start thinking of every interaction from a utilitarian point of view – “how can this guy help me?” “what info can I extract from this call?” “Does this person know someone who might be helpful for one of our companies?”.  It gets a little slimy, and in a business where reputation is really important, sliminess is bad.

#5b. Not turning every interaction into a business opportunity. The flip side is that it’s easy to have blinders on and not make the most of the interactions you do have.  A diligence call is a diligence call, but it’s also a chance to understand another person’s perspective, learn a new industry, or identify a non-obvious problem.

#6. Thinking more about what could be than what really is. Not everyone has this problem, but as a former operator, I tend to be optimistic about companies.  When I see a nugget of something interesting, I am really tempted to forget about the challenges that the company would face and think more about all the great things the company could do if everything went its way.  I do think it’s better to be an optimist than a pessimist (because you can always find a reason to hate an early stage investment).  But it is necessary to really be aware of all the risks in a business, and not over-estimate your ability to help the company avoid these risks.  In some cases, an investor can make a heroic effort and radically shape or transform a company. But in most cases, your influence is limited and you have to rely on the team you’ve invested in and the market they have chosen and help from the sidelines.

Those are my reflections from my first year and a half in venture.  Do others have more to add or anything they disagree with?  Let me know, I’d love to have this discussion.