All Perspectives

Vital Signs: Monitoring the Healthcare VC Space

Introduction

Before the year comes to a close, we are excited to take a break from AI hype and share our thoughts on one of the most compelling investment areas: healthcare. 

For those of you who don’t know us, Laconia is an early-stage venture capital firm based in NYC, investing in software companies that are changing the way business is done. 

Over the past three years, we have been running a fellowship program called the Venture Cooperative where we engage with experts globally to deepen our industry expertise and identify the most promising opportunities. 

It was through this program that we got to work with the brilliant Dr. Swathi Varanasi on a deep dive report on healthcare. “Dr. Swathi”, as she is known in her field, has both clinical expertise and market strategy experience. Her report includes market dynamics, investment trends, subsector highlights, and emerging investment opportunities, with a particular focus on the b2b software space.

Investing in healthcare is not a new concept for us. Laconia has been actively investing in the healthcare and digital health space since 2020 and, more recently, we have made several investments in companies such as Yuvo Health, Auxa Health, and Tender (more context below).

As the report explores, key healthcare trends present exciting investment opportunities. These areas include: 
1) Provider operations platforms that streamline data management, improve communication workflows, and optimize healthcare delivery; 
2) Care system changes such as collaborative and value-based care; and 
3) Personalized/alternative care offering personalized care solutions for populations with unmet needs and in marginalized communities such as Medicaid and Medicare. 

Our investment in Yuvo Health, a technology-enabled administrative and managed-care solution for community health centers (CHCs) marks our excitement for value-based care. Yuvo Health is driving CHCs’ growth by supporting their back-office functions and providing mechanisms for them to successfully participate in the value-based care ecosystem. 

We have also invested in companies that are focused on delivering personalized care. Auxa Health, an AI-powered health benefit navigation technology, revolutionizes how healthcare organizations and individuals navigate the complex world of Medicare, Medicaid, and public benefits. Tender, an AI-powered smart care system, empowers anyone to confidently and capably care for their aging loved ones. 

If you are building in these spaces, we would love to learn more.

Without further ado, here’s a summary of Dr. Swathi’s insightful sector deep dive report.

Navigating the Healthtech VC Landscape: Key Insights

                                                                                               (written by Dr. Swathi Varanasi)

Healthcare Market Overview

The healthcare industry consists of–what Dr. Swathi refers to as–the 4 P’s–providers (hospitals, clinics), payers (insurance companies), pharmaceutical companies, and patients. The U.S. healthcare sector continues to grow, driven by factors such as an aging population and technological advancements. With healthcare spending projected to hit nearly $6.2 trillion by 2028, the market presents significant investment opportunities. The United States has the highest healthcare spending globally, reaching $10,224 per capita in 2020—double that of other high-income countries, like Germany and France. Healthcare spending represented 19.7% of the U.S. economy in 2020, a steep rise from just over 8% of GDP in 1980.

Within this ecosystem, healthtech platforms with a B2B business model have emerged as essential components in enhancing patient care, optimizing operations, and driving efficiencies. From clinical decision-making tools to patient engagement platforms, these technologies are revolutionizing how healthcare services are delivered.

Healthcare Market Segmentation

Despite broader economic challenges, healthcare VC investments showed resilience in 2023. Venture capitalists raised $19 billion for healthtech-focused funds, making 2023 the third-best year in healthcare fundraising in the past decade. 

The healthcare market in 2023 is segmented into four key domains: Pharma/Biotech/Digital Therapeutics, MedTech/Devices, Diagnostics/Tools, and Healthtech. Each segment plays an interconnected role in advancing clinical care, with healthtech acting as the digital backbone that supports innovation and data-driven insights across the entire ecosystem.

Healthtech Investment Landscape

Healthtech is rapidly evolving, driven by three key trends: personalized care, operational excellence, and care system transformation. At the forefront of healthtech innovation is the recognition of data as the lifeblood of progress. B2B SaaS platforms that facilitate seamless data exchange are crucial for streamlining workflows, enhancing efficiency, and ultimately driving improvements in patient outcomes.

Although healthtech investments tapered from $44.3 billion in 2021 to $23.1 billion in 2022, and further to $8.2 billion in 2023, the sector remains robust. Funds like Plug and Play, Alumni Ventures Group, Alexandria Venture Investments, Gaingels, General Catalyst, Octopus Ventures and M13 were some of the most active healthtech investors in the US, UK, and Europe between 2022-2023. The U.S. led the healthtech market with $6.9 billion invested in 2023 alone, demonstrating the ongoing demand for technology-driven healthcare services. 

In 2023, healthtech secured $10.6 billion in funding across 715 deals, with provider operations leading the way at $4.1 billion. A notable portion of this growth is closely tied to the integration of generative AI into healthtech solutions. Venture capital deals for healthcare AI have surged 2.1x since 2019, a growth rate nearly double that of AI in other tech sectors. Currently, about 15% of healthcare companies receiving VC funding have incorporated AI and machine learning technology into their products, with seed-stage valuations increasingly favoring those leveraging AI.

Companies like Livongo, Forward, Noom, and Lark are utilizing AI to monitor quantitative health metrics in the alternative care subsector—one of the most invested areas within healthtech in 2023. Other companies are using AI to enhance clinical trial processes, develop advanced imaging technologies, and reduce provider and administrative burdens. Despite gaps in AI, such as racial bias, diagnostic accuracy, and ethical concerns, this category within healthtech shows promise. The market continues to grow, with new AI-enabled healthtech companies emerging monthly.

These trends underscore the importance of digital tools, data-driven insights, and AI integration in driving the future of healthtech. There is a significant opportunity in providing innovative, AI-powered solutions that address the evolving demands of the healthcare sector while advancing clinical decision-making and patient care.

Key Investment Highlights

  1. Provider Operations: This subsector emerged as the leader in healthtech VC investments in 2023, attracting $4.1 billion across 372 deals. B2B platforms focusing on provider operations are gaining traction by offering scalable solutions that streamline data management, improve communication workflows, and optimize healthcare delivery. Companies like HeartFlow, ShiftMed, and ShiftKey collectively raised over $715 million, highlighting the subsector's focus on enhancing efficiency in provider-patient interactions.

  2. Alternative Care: Alternative care secured $4.2 billion across 234 deals in 2023, indicating a strategic pivot toward high-risk, high-cost populations and specialty care. B2B platforms in this space are increasingly supporting models of value-based and in-home care. Companies like TailorCare and Author Health were early-stage investments in this segment, attracting $60 million and $342 million, respectively. The emphasis on personalized care for populations with unmet needs and in marginalized communities marks a time-sensitive investment opportunity.

  3. Value-Based Care (VBC): Value-Based Care continues to gain traction, particularly within the alternative care subsector. In 2023, VBC-focused companies attracted nearly half of the healthtech mega-deals, highlighting a shift toward care models that prioritize long-term health improvements and cost efficiencies. Major investments include Carbon Health's $100 million and Strive Health's $166 million, reflecting a trend where reimbursement models are aligned with quality of care rather than the volume of services. B2B platforms that support VBC through care coordination, data analytics, and patient engagement tools are critical in driving this model forward. As healthcare systems increasingly shift toward value over volume, VBC presents a promising area for sustained investment and innovation in healthtech.

Healthtech Subsector Highlights

While various avenues for investment exist within the healthtech sector for 2024 and beyond, two areas stand out for their potential growth: women’s health and geriatric care. Both present opportunities to address unmet needs in healthcare delivery, patient engagement, and care coordination.

Women’s Health Solutions

Women’s health is a surprisingly underserved market, with substantial economic and healthcare potential. The report highlights that closing the women’s health gap could add up to $1 trillion to the global economy annually by 2040. Currently, women’s health accounts for only 4% of total healthcare R&D funding, despite women representing 50% of the global population and often being primary healthcare decision-makers. An alarming statistic is that effective treatment of conditions like premenstrual syndrome (PMS) and menopause alone could contribute approximately $235 billion to the global GDP.

In 2023, venture capital funding in the women’s health sector continued to gain momentum, with startups raising approximately $1.4 billion. Companies like Flo Health (Europe’s first femtech unicorn) raised $200 million, and Maven Clinic reached a $1 billion valuation, signaling the increasing investor interest in this space. Yet, there remains a significant market gap in areas such as hormonal health, menopause care, reproductive health access, and chronic conditions like PCOS and endometriosis call for women-founded solutions for women.

Healthtech software platforms can address these unmet needs by providing comprehensive tools for patient education, care coordination, and remote monitoring tailored specifically to women's health. Companies like Ovia Health and Carrot Fertility have leveraged technology to offer fertility management, pregnancy care, and family planning support, yet the market for innovation is still wide open. In 2023 alone, fertility care accounted for 34% of the total investment in women’s health technology, leaving room for further investment in other areas like menopause management and maternal mental health support.

The integration of women-specific health data into clinical decision-making processes is becoming increasingly important. Nearly 70% of women report that their healthcare providers do not discuss or prioritize menopause care, illustrating the need for solutions that provide actionable insights for both patients and clinicians. Wearable technologies, such as period and fertility trackers, have already demonstrated initial success, with over 60 million active users on apps like Flo, Natural Cycles, and Clue globally. This real-time data collection allows for better management of chronic conditions, personalized treatment plans, and more proactive care.

With the sector projected to grow at a CAGR of 15.6% from 2023 to 2030, both investors and healthtech companies are increasingly looking to capitalize on the shift toward comprehensive, data-driven care models tailored to women’s health needs.

Geriatric Care Management

In the United States, adults aged 85 and older are projected to nearly double from 6.7 million in 2020 to 14.4 million by 2040, while those aged 65 and older will comprise 21% of the total population by 2030. Despite this substantial demographic shift, only 6% of healthcare funding is currently allocated to geriatric-specific care, revealing a considerable gap in the market for technology-driven solutions tailored to elderly patients.

Platforms like ClearCare and CareAcademy are making strides in enhancing home care operations and caregiver training. However, the broader integration of these platforms with healthcare systems and the utilization of data analytics for predictive care insights remain limited. As the need for scalable solutions in geriatric care management, medication adherence, and remote monitoring grows, B2B SaaS platforms have an immense opportunity to improve care coordination, streamline processes, and reduce the burden on healthcare systems.

Good news is that investor interest in geriatric-focused healthtech solutions is on the rise. In 2023, geriatric healthtech companies secured over $2.3 billion in funding, with approximately 30% of recent healthtech funding rounds going toward platforms offering remote monitoring and telemedicine services for seniors. Companies like Honor and Papa raised $370 million and $240 million, respectively, emphasizing the sector's potential for growth. These investments reflect the demand for technologies that can manage chronic conditions, support medication adherence, and improve overall patient outcomes in the aging population.

Integrating AI and predictive analytics can play a pivotal role in transforming geriatric care. AI-powered predictive models assist healthcare providers in identifying potential health risks among elderly patients, enabling early interventions and personalized care plans. Machine learning algorithms further optimize medication management by analyzing patient data to offer tailored recommendations, reducing adverse drug interactions—a common issue for older adults taking multiple medications.

As the global geriatric market is valued at over $1 trillion and is projected to grow at a CAGR of 7.1% from 2023 to 2030, healthtech companies and investors can drive much needed innovation in this space.

Looking Ahead

While the investment landscape has shown resilience, healthtech faces a series of challenges that have shaped the market’s direction in recent years. Market consolidation has become more pronounced, with investors adopting a more cautious approach, especially towards early-stage companies. The rate of new investments dropped by 28% in 2023, and seed and Series A deal sizes shrunk by 56%, from a median of $9 million in 2020 to $5 million in 2023. This contraction reflects a new reality where companies must demonstrate clear paths to profitability, operational excellence, and sustainable growth before attracting sizable funding.

Additionally, insider rounds accounted for nearly half of 2023 financing, indicating that companies are increasingly turning to existing investors to meet revised milestone expectations. This trend suggests that investors are hesitant to commit to new ventures without a proven track record, further tightening the market for fresh entrants. Later-stage companies are not immune to these challenges either–companies like Commure and Monogram Health are now facing the reality of aligning their valuations with market fundamentals, signaling a reset in expectations. The era of sky-high valuations without clear revenue or growth strategies is dwindling, compelling companies to focus on long-term viability and strategic partnerships.

However, despite these hurdles, there is a sense of optimism within the sector. The current challenges are prompting B2B SaaS companies to adapt and refine their models, leading to stronger, more sustainable (and profitable) businesses. The emphasis on demonstrating tangible impacts on patients and reducing healthcare costs is steering companies toward innovation that aligns with market needs. Healthtech firms that can successfully navigate these obstacles are likely to emerge more robust, with scalable solutions that can drive future growth. The tightening of the investment landscape has, in effect, paved the way for a new wave of healthtech companies—those that are better positioned, more focused, and equipped to address the ever-changing demands of the healthcare industry.

About the Author

Dr. Swathi Varanasi, also referred to professionally as Dr. Swathi, blends clinical expertise with market strategy, making her a valuable asset to Laconia Capital’s healthcare investment efforts. With a doctorate in pharmacy (PharmD) and postdoctoral training in personalized medicine and healthtech, she has extensive experience in academia, clinical practice, consulting, research, and medical affairs strategy. Dr. Swathi has worked with various healthtech companies, including those focused on digital health and alternative care models. Her deep understanding of the industry enables her to provide insights into the healthcare VC landscape, particularly in identifying investment opportunities that drive improved patient outcomes

If you want to dive deeper and get a copy of the full report please get in touch directly with Dr. Swathi Varanasi.

Legacy Portfolio Spotlight: LeagueApps

We're thrilled to share that our legacy portfolio company, LeagueApps, has concluded a significant financing round led by Accel-KKR. LeagueApps proves the Laconia B2B investment rule: discover an MVP solving a high pain-point workflow problem combined with great founders who embrace a steady customer-focused go-to-market execution; over time tremendous value gets created with an exciting exit. Congratulations to Brian Litvack and Jeremy Goldberg for a tremendous accomplishment and continued success bringing the company to higher heights alongside Accel-KKR.

The Founders of Laconia first invested in LeagueApps in 2011. We were introduced to Brian and Jeremy as “two really good & smart guys passionate about sports”. They set out to alleviate the pain of managing a recreational sports league. Solutions to that point, if they weren’t paper- or Excel-based, were kludgy at best. This was a huge market waiting to be served. 

From Laconia’s perspective, LeagueApps was an early indicator that our B2B investment thesis, the digital workflow transition from manual and legacy software, was also untapped. LeagueApps perfectly lined up with the transition that we were seeing across most industries then and now. Despite the rise in popularity of the B2B investment focus, this transition has not abated. Instead, it is further evolving with the rise of new technologies and AI-enabled platforms.

Still, a market insight is only as good as the people who discover it. Brian and Jeremy showed intelligence, adaptability, keen salesmanship, excellent executive ability, and most importantly patience and honest character. This is not hyperbole: these are always the qualities that bring great companies to fruition in our experience. An idea is only as good as the jockey(s), especially when investing at the seed stage. Seeing our Laconia jockeys cross the finish lines could not be more rewarding!

Breaking Into VC: A Guide to Starting a Career in Venture

Intro

Since joining the team at Laconia 12 months ago, people keep asking me, “How did you break into venture”? 

Well, as I shared in the previous blog here about why I joined Laconia, a career in venture capital was not something I grew up seeing, and certainly was not an obvious career path straight out of law school. 

For more than 10 years before moving into the world of venture capital, I was an operator first. I started my career in capital markets and spent more than 6 years in business development at Thomson Reuters (Finance & Risk) before doing an MBA and moving to the world of venture-backed b2b software startups. I then spent more than 4 years building and scaling startups, and I was fascinated by the pace, impact, and scale venture capital has to offer. Though I enjoyed flying ships while building them, I wanted to transition my career to creating a larger societal and structural impact. Given my background and passion, capital distribution and allocation became my new obsession. I spent the next few years navigating the space of capital movement: moving funds to charitable initiatives @ Founders Pledge, building an investment club for female retail investors @ 51Unicorns, and orchestrating investment opportunities between angel investors and social impact founders @ SeedImpact. Joining a venture fellowship (big love to IncludedVC) pushed me to fully embark on the journey and make my way to a venture capital firm last year. 

So if you, like me, know you want a career in venture capital but come from a unique and untraditional background, here is what I did from the moment I became serious about a career in venture capital. This step-by-step plan helped me land where I am, and hopefully, this helps you too!  

One note before we start: in this article, I will not be discussing whether VC is for everyone or who should be applying to VC. I will leave the soul searching exercise for you. However, make sure you don’t skip over this part and spend time thinking about why you want a career in VC. Knowing your WHY is not only good practice, but it will help you stand out from the crowd and keep on pressuring this path when things get tough. Like the best founders (who you will one day back), those who have a clear idea of why they are doing what they are doing - why them, why this problem, why now - tend to stand out and succeed. 

The path to VC is not easy, and neither is the work itself, so be sure to know whether this is the path for you, and if it is - let’s dive right in! 

Which VC am I? Be Strategic and Play to your strengths 

Before jumping into the practical steps one can take to increase their chances of getting a job in VC, particularly coming from an “untraditional background”, I want to start with an overview of the different paths one could take starting a career in VC, and how to decide which path is for you. 

As you may know, venture capital firms vary by AUM (asset under management), investment stage, investment strategy, team size, and more. Though the lines are getting blurrier these days, there is a difference between the associate role’s job at a large global venture capital firm and that at a boutique one. Some firms invest in software only, some do hardware, some invest in B2C, and some do medical devices. The world is your oyster but if you want to increase your chances of success you want to align your strengths and interests with the firm’s needs.

Understanding your strengths could help determine which investment stage, thesis, and size of the fund might be best for you. Now I know what you are thinking, you might be the “I am not picky” or “I want to keep my options open” type of person, or perhaps you are the “just get me into a VC, I don’t care what they invest in” type of person. That is all fine and dandy, but if this article is about breaking into VC successfully, then understanding the process and focusing on playing to your strengths will increase your chances of success here. 

For example, if you are moving from a finance-driven role to VC (like investment banking) consider a firm in growth stages where your financial skills could become very valuable. If you have killer sales skills and access to brilliant founders, consider early-stage investing instead, where financial analysis is not as heavy. 

If you are an engineer who did an MBA, you could focus on early-stage deep tech firms. Or if you’re a medical student, you should pursue an early-stage healthcare fund. I am suggesting early stage vs. later stage as I am assuming they are not a banker turned doctor, to now an aspiring VC … but you get my point! 

Of course, like any other job, you also want to consider things like the size of the team, the people you’d be working with, etc. 

Find yourself on the map and direct your efforts where the chances for success are cleared. 

In my case, though I have sharp financial modeling skills (I worked in capital markets, have an MBA with a finance concentration, BA in economics, and 10+ years in fintech), my resume screams sales and network-building much more, so early-stage investing made more sense for me. I also want to invest in the overlooked funders and markets, a chance you get to do more at the earlier stages of investment. In addition, I spent more than 10+ years building and scaling in the b2b SaaS space, so I focused on firms that were focused on business software as an investment strategy, as opposed to those that were very consumer-heavy. 

Of course, don’t be too narrow or you will be left with only 1-2 firms that match your criteria (like I did at one point), but have a clear idea of what your ideal firm might look like - it comes across in spades when a candidate is focused on why they want to be a VC, and what they want.

One last note here about job titles: if you like the team, the firm, and the strategy, don’t over-index on your title. Some people ask me, especially those who pivot at a later stage of their career, what title they should ask for. I would stay open-minded here and judge opportunities case by case. At the end of the day, it is not your title but your day-to-day work that counts. 

I know where I am going, but how do I get there? 

So once you decide on the investment stage, strategy, and firm size, what do you do?  

First, a note about expectations. As we all know, job opportunities in venture capital are slim, especially in this current market. The industry is small (by number of jobs), and positions open at different times, so it’s important to keep in mind that on average, the process of landing a role in VC while actively applying could take up to 6-9 months. Make sure you are aware of that timeline before quitting any jobs or as you plan in advance. 

Preparation is key - Immerse yourself in VC 

The first step to landing a job in VC is doing your homework. Learn everything you can about venture capital. What is it, how does it work, what do investors in your investment stage look for when investing, etc? Read blogs and books, listen to podcasts, and immerse yourself in the companies building, raising, scaling and exiting in the spaces you are applying for. When interviewing you will be asked about companies you are interested in and why, maybe asked to write an investment memo or decision, asked to assess the firm’s existing portfolio companies and suggest companies that match their investment thesis and more, so you need to be prepared. This stage should also help confirm the question we started this article with - is VC for me? 

Consider taking a Venture Capital Class/Fellowship. There are many options out there both paid and free. I did IncludedVC, a unique fast-track MBA for aspiring venture capitalists. At Includedvc I got to learn from the top VC talent everything I needed to know, from cap tables, to deal sourcing, to managing a board and more. We even dove into the mechanics of applying and interviewing for VC roles and how to stand out. I also gained valuable hands-on investor experiences such as deal sourcing, investment memo writing, and investment committee pitching in a safe learning environment. Most importantly, I was surrounded by a community of incredibly talented and kind people all trying to change the face of VC. During the interview process these were the friends who jumped on calls to help me prepare for the interview, and today these are people I share deal flow and opportunities with. Fun fact, it is also where I met Geri for the first time and made sure to follow up with her!

Other programs include VC Unleashed, Going VC and, of course, this article will not be complete without a shameless plug for Laconia’s own The Venture Cooperative, the most accessible on-ramp to venture capital. This is where more than 1,000 fellows learn the behind-the-scenes of venture capital as a whole, dive into Laconia’s investment process in particular, and get to see how venture capital works behind the curtain. Oh, and applications are open for our Fall 2024 cohort until September 22, 2024.

For your DIY version, here are some crowd-sourced resources on good podcasts, books and blogs. 

Applying for Jobs

Okay - you know what you want and you’ve learned about the space you want to go to - so how do you actually apply? More than any other industry, VC is highly closed off and job opportunities arise mainly from within the VC network (hence the term “breaking in”). This system is flawed and structurally biased, but you need to understand it as knowing how hiring decisions are made in VC will help you navigate the process better. 

You’d probably want to divide your time between Publicly listed and Unlisted opportunities. 

Publicly Listed Opportunities

Though you may think your next role would likely come from something other than a job post, I made sure I followed and knew about EVERY job post that was opening up. VCs do occasionally make hires from these structured processes, and in any case, these opportunities give you the chance to get acquainted with numerous firms.

To keep track of Publicly listed opportunities make sure you do the following: 

  • Follow Nicole DeTommaso from Harlem Capital. She has a wealth of resources and information about the hiring process, and posts opening positions that land on her desk every Wednesday. Here is a recent post.  

  • Sign up for Newsletters like Startup & VC and John Gannon for their weekly email listing all VC job openings by location  

  • A warm intro where possible is preferred -  If you find a job you want to apply to, the same hiring rules apply. Try to find a warm intro where you can. 

  • Don’t have a warm intro? Send it anyway - If you are applying from a nontraditional background, chances are you don’t have the network to be able to just count on that. This is like the “family & friends” round most founders don’t have. So don’t give up and make sure you get help on building a strong CV and Cover letter that tells your story. You might be surprised, but I had interviews from “no warm intro outreach”. Don’t get me wrong, I had many Nos and Black Holes, but at some point, my CV and Cover letter told the story of “why me” correctly, and I was invited to interviews even without knowing anyone at the firm. Don’t miss out on at least putting your name in the hat. 

Unlisted Opportunities 

In addition to following job openings and applying to publicly listed opportunities, make sure to build a pipeline of firms you want to work for. A lot about breaking into VC is about timing and you want to be proactive about landing the dream job you want. This is the same advice I would give founders: understand the process, figure out your ideal target and hit the pavement. 

  • Create a list of dream companies that match your hiring profile (based on the assessment above). 

  • Map out where you have connections and try to get introductions

  • If you have no introductions, see where these people are and go meet them - look at what panels they speak on, which events they might be at, and try to meet them 

  • And you know what I will say - if you don’t know them, don’t know anyone who knows them, and they are hiding and not going to ANY networking events, then “cold outreach” them. I played a game with myself to see how many people responded to my cold outreach. The answer: a lot! Do your research, be relevant, polite, and valuable, and ask for a short time to speak. 

  • A good book about the topic is the 20-minute Networking Meeting book. The TLDR is: 

Come prepared for the call, give context, introduce yourself, and ask 1-4 well-researched questions, including who else you should be speaking with. Follow this structure and, trust me, one of the following four things will happen: 

  • The best outcome, they are hiring and you’ve impressed them so much that they want to hire you - not likely, but possible.  

  • They are not hiring, but know someone who is hiring and you have impressed them so much they want to introduce you to them.  

  • They are not hiring, but know someone who you should be speaking with. You have impressed them so much they want to introduce you to them.  

  • They are not offering to introduce you to anyone but they mention a person, a place, a program, or an idea you haven’t thought about, and you are one step closer to your destination. 

  • Always follow up (in no more than 24 hours), give something back, and keep them in the loop about your process. Networking is an art, one you should master as a VC, so you might as well start now. Message me if you want a copy of my networking guide.

In the meantime, immerse yourself in the ecosystem and make positive contributions

I struggle with the traditional VC advice of “doing the work before you have the job” as it suggests people need to do free work in order to be considered for VC roles; in reality, we should be pushing VCs to professionalize their hiring process and be more diligent about how they source and evaluate talent. 

That said, trying to gain relevant experience (via paid internships or unofficially) will help you operate for the job you want, not the one you’re already in. Consider immersing yourself in the ecosystem and making positive contributions, whether it's helping founders with their pitch decks, making introductions between people who should know each other, attending events, writing blogs about trends you are seeing in the market, collecting useful information and making it accessible, etc. In short, leverage your skills to build your reputation. 

By the time I met Geri, Jeff, and David, I was seeing them at events, I introduced them to a couple of founders (one of which made it to their due diligence process) and I was following and interacting with them online, thoughtfully discussing our approaches towards venture investing. 

The work I did when I was breaking into VC is not far from the work I am doing today. 

If I met a good founder I would think about which investor I met recently that could benefit from meeting this person. Note: I did NOT send a supermarket list of companies I read about in the news - that is not helpful to a VC. I sent only founders I had met personally at pitch competitions or other industry events and was really, really impressed with. 

When you discover these opportunities, email the investor you have in mind with a well-researched and crafted email connecting the investor’s investment thesis to the founder and company and asking if they want to be connected. 4 out of 5 of these emails are likely to be a pass, but I would love to get emails back passing but telling me I was on the right track, like “Ah I already know X, we met with them last week” (perfect! I knew you’d like them); “Ahh I really like the founder, but we struggle with the category” (great, identifying strong teams is critical to early stage investing); or “We are already invested in a similar company” (hooray!); and the best one “Yes, would love to meet, pls connect us”. 

ALL of these responses are equally good. They all suggest that you are identifying good founders, building venture scale companies and that you understand the investor's investment thesis and focus - the rest is really not up to you! 

A final note about starting 

Hopefully, this article gave you a framework to best approach the process of breaking into VC, and soon enough you will land your dream job. 

When you do, here are a few final tips about starting 

1- Don’t forget to stop and celebrate - you have beat the odds! If you can, try and take some time off to rest before you start your job. As much as you are eager to start, you probably worked really hard to get here, and you are likely to work very hard once you start. Try and take some time to re-set and recharge your batteries starting your dream job on the right foot. 

2- Work in stealth mode for the first month (thank you Nicole DeTommaso for this tip). As much as you can, try and take the first month to deeply learn your firm, the investment thesis, the ecosystem, and your team. Strategize before the floodgates on inbound pitches and opportunities start to open. Once you officially announce your role at the firm, you will take every call and meeting, so make sure you come prepared. 

3- Do a soft launch and thank all the people who have helped and supported you in the process. Email all those investors and founders you met along the process and share your news. They are going to be so happy for you and are likely to be your first champions in your new role!  

If you want to read about how I spent my first 100 days at Laconia, feel free to read here

If you have any follow-up questions please feel free to connect with me on LinkedIn or email me at: mirit@laconiacapitalgroup.com. Good luck!

Note: 
The focus of this article was to try and give you a playbook on how to approach the process and how to try and stand out. There are many more resources out there about what to do once you land an interview/already have had some internship opportunities. Nicole has great posts about these Popular Interview Questions and How to prepare for a case study and her famous 10-page presentation that landed her the job.

Contributed by Mirit Lugassi

Portfolio Spotlight: Trestle

We’re thrilled to announce our investment in Trestle alongside Lerer Hippeau, MetaProp, Alumni Ventures, The LegalTech Fund, Redbud VC, and Meridian Ventures (talk about a party!). 

We first met co-founder & CEO Victor Zhang in an unusual way: he sent us a cold pitch submission. Standing out in a sea of inbound messages is no easy feat, but his relevant background and clear value proposition were impossible to ignore. 

Trestle is the construction industry’s only subcontractor and supplier data centralization and performance management solution. By creating a centralized platform that seamlessly collects and connects key subcontractor and supplier information from internal and external systems, Trestle empowers contractors to choose the right partners, improve project transparency, share real-time feedback about third-party performance on projects, and mitigate risk before it impacts their bottom line.

Prior to Trestle, Victor spent 15 years in the heavy construction industry. He led large estimating and procurement teams on landmark projects nationwide, including a $3.8 billion construction project, the largest in Virginia’s history. Co-founder & CTO Jason Chen designed and developed countless web and application experiences as a software engineer and team lead. Joining forces at Trestle, they are providing modern software solutions for construction, specifically in areas that are deeply complex and often misunderstood by outsiders without direct experience.

If you are interested in learning more, read Trestle’s announcement here and reach out to Victor directly.