How do you communicate your sector or stage specialization to entrepreneurs and co-investors?

It's about understanding the nuances, the execution-level details. eg. A good GTM 6 months back might be non-existent now because times have changed. separate signal from the noise- understand the difference between reality distortion and being delusional. These aren't things you can learn by reading a sectoral thesis or blogs. Ideally, be a generalist across many sectors and specialize in a few. Knowing more matters.

Specialization is function of the market you are playing in, how deep it is, are there enough players offering what you are offering, is the market big enough. The framework here is very similar to what is used to evaluate an early stage startup. There are pros & cons of specialization - Pros - 1) It helps your VC firm stand out 2) Builds thought leadership in particular sectors & stages 3) Cuts out the noise 4) Helps building deeper knowledge base and insights and hence spotting opportunities earlier. Cons - In a nascent/developing startup ecosystem 1) It restricts your investment areas and depending on sectors where one engages, there might not be enough good opportunities there 2) Might become difficult to deploy capital raised

Pour communiquer sur ma spécialisation, je me concentre sur des posts à haute valeur ajoutée. J’ai constaté que le reach était faible, mais le taux de transformation des vues de publication en abonnés est très intéressant.

Specialize in a sector that has the potential to grow for decades. Only then can you build generations of funds that can effectively support founders. Specialization should come from your experience & DNA. It will be challenging for you to create the credibility of a specialized VC without having expertise in a particular industry. While you can achieve the basics of a new industry quickly, it takes many years to master. So, build on what you are already good at. You can specialize in a particular market, sector, vertical, or business model. When choosing a specialty, think about its potential. Don't unthinkingly follow trends. Specialization must be what you believe in and where you can give value. Then you will easily win the best deals.

In the current times when there are 1000s of VC and other investors out there, it helps to clearly mention your area of focus to reduce the clutter out there. This saves lot of time of the founder/entrepreneur as well as the investor. I have clearly mentioned about the sector in which I invest on my website, my social bio's like Linkedin, Twitter(X), etc. Even in the various talks that I do or panels I am invited in, I ensure to clearly mention the sectors of my interest. One of the best way to do this in 1:1 setting is to clearly mention it out upfront in your introduction itself so that the expectation are set clearly.

Clear and consistent communication is the key here. For example, when it comes to introducing TDV Partners to any founder or fellow investor or any other stakeholder, I take a minute or 2 to explain them my thesis. This includes, what kind of business I like, sectors I invest in, sectors which I am open to as well as sectors where I dont invest, which stage I invest in, what kind of founders I look out for, the range of cheque size as well as the expectation from the company.

In my experience, in nascent ecosystems, investment stage definitions may not always mean the same thing as they do in developed markets. When you are expanding your focus to a geography, it’s important to collaborate or partner with others that have been investing in that market for longer than you have to understand the nuances.

💯 spend time understanding the local context; but also seek a wide enough set of perspectives so as to avoid biases. This should form part of your background research process or "macro due diligence" as a new entrant investor in a new geography or sector