5 Things I Wish I Knew Before Starting in Early-stage VC
TLDR
- Casper Bjarnason, 9+ months into byFounders, argues VC cannot be self-taught and outlines five operational realities newcomers underestimate.
Key Takeaways
- VC funds only target companies capable of explosive value creation at scale; per Thiel’s rule, every investment must have potential to return the entire fund.
- The job is a time-optimization problem: filtering 100 possible deals down to 1 investable requires built mental models, not just hustle.
- Weekly work splits across four functions: sourcing, evaluation, investment decisions, and portfolio support; interns at byFounders spend roughly 60% on evaluation.
- Early-stage conviction is built on qualitative data gathered from founder networks, portfolio references, and operator communities like byFounders Collective (Skype, Pleo, Zendesk alumni).
- byFounders uses an 8Ts framework (Team, TAM, Traction, Timing, Tech, Transformative, Transparency, Tomorrow); Team ranks first because it is the one fixed variable in any deal.
Why It Matters
- Most VC education focuses on theory; this account describes the actual time allocation and decision filters used inside a live early-stage fund.
- The emphasis on qualitative signal over quantitative metrics clarifies why network access is a structural advantage, not just a soft perk, in early-stage investing.
- Understanding that VC is unsuitable for most startups helps founders self-select before pitching, saving time on both sides of the table.
Casper Bjarnason, byFounders · 2025-06-10 · Read the original
