Here's how you can bounce back from a venture capital failure by leveraging your network.

Failure is part of the game in venture capital. The first thing to know - anyone in VC who says they have never failed is lying ;) Second thing is that bouncing back is all about learning & iterating - What went wrong? What signal did you not see? What insight was most critical? How does that improve your aim going forward? Perspective is everything!

Cheap Money Bloodbath . Let’s face it. Cheap money has lead to bad investment decisions with other people’s money. Too much cash chasing available talent. Elevated expectations and valuations. AI will make it possible to replicate many software business models with a handful of people meaning current investments could be financially defunct. There is a bloodbath coming and money will be harder to get in future. Ultimately that is good for the market and for productivity. The sugar rush is over. Some will survive who allocated capital more wisely. Some careers will end here. Same old same old.

In addition to reassessing goals and seeking feedback, it's crucial to analyze the failure objectively and identify key lessons learned. This involves reviewing the venture's financials, market conditions, competitive landscape, and team dynamics to pinpoint the factors that contributed to the setback. By understanding the root causes of the failure, you can gain valuable insights that can inform your future investment decisions and strategies.

When facing a setback in venture capital, it's crucial not to isolate yourself. Your network can provide invaluable support, both professionally and personally. Connect with trusted mentors and peers to share your experience, seek guidance, and brainstorm new opportunities. Their support can help you process the failure, gain new perspectives, and stay motivated in your pursuit of new ventures. Remember, even the most successful investors have experienced setbacks, and your network can be a lifeline during challenging times.

Start by really thinking about what went wrong and writing down an honest account of what happened, along with the helpful things you learned from it. I believe the network is a variable asset that you can put your money into if your last business failed because of a set of fixed assets. The second time you are involved, check your compatibility first! A key aspect to remember is to constantly leverage your network to find fresh possibilities and knowledge! 1. Know that your links and relationships have a huge amount of potential to help you get better and be successful in the future. 2. Ask for Help 3. Make new connections 4. Get involved 5. Earn trust 6. Work together 7. Strengthen relationships 8. Be proactive

Acknowledge and Accept Failure: Acknowledge it, learn from it, and avoid dwelling on self-blame. Learn from Mistakes: Analyze what went wrong. Use this knowledge to improve and avoid similar pitfalls in the future. Adapt to Feedback: Seek feedback from peers. Understand their needs and adjust your approach accordingly. Cultivate a Supportive Network: Mentors: Connect with experienced mentors who can offer guidance and share their own failures and successes. Peers: Surround yourself with like-minded individuals who understand the challenges of entrepreneurship. Networking Events: Attend industry events, conferences, and meetups to expand network, Remember, failure doesn’t define you; it’s how you bounce back that matters.

Don't be afraid of asking for feedback. Failure is only saying that you need to choose a different route next time. Feedback is not personal criticism. Rather a way to improve next time.

Seeking feedback is great but you don’t need to take in all the feedback. Some of it may fit. Some of it may not. You can learn what you need from a few calls to get input on your experience. What did you do well? Where did you have areas for potential improvement? But I am sure not all the feedback will fit. The biggest learning is to decide from what you hear what you want to take in and improve vs what does not fit. You may also learn from the feedback what type of organization and culture is a better fit for you moving forward. Sometimes that is the biggest learning. Making sure that you surround yourself with truly supportive people is key to achieving your goals and enjoying the process along the way.

The art of the pivot can be beautiful! Knowing when to pivot is the magic. Sometimes when things get tough companies pivot- when the answer is to stay focused and work through tough issues. But sometimes innovation inherently drives a natural pivot. One of my favorite examples is the company Intuitive Surgical. They created a robotic surgery device for cardiac but ended up taking off in prostate. This kind of pivot is important. Where is adoption most likely to take place for your product/offering? Listening to customers and being agile is essential. If you pivot based on customer data that can be incredibly powerful. Knowing when to pivot vs stay focused is the key to nailing the art of the pivot. You got this!

Cultivating your network is so important. You can’t pick up the phone with an ask without a solid relationship. Making sure you are cultivating relationships in a sincere way really matters. Nothing replaces a dinner or similar social event to really get to know people. People want to know who you are. Are you someone they want to spend time with? Are your values aligned? Building a network is not just about showing your business skills. It’s about sharing who you are as a human. And aligning with other like minded humans. The most powerful network is authentic and full of people who share your mission and values. Forcing a relationship that is inauthentic is not a real network. I wish I knew that years ago. You got this!

Stay honest to yourself and believe in your vision. Balancing both is challenging and admitting to failures is even more so. VCs are a means to an end and shouldn’t distract you too much. Spend less time on “networking” and more time to dive deep into your work.