Like the environmental narrative on Bitcoin, the way VC tries to generate returns is back to front.
... which is probably why so much of the industry went for the easy gains of early exit liquidity through investing in ICOs rather than doing their job of raising real people bringing real commercially valuable ideas to the world.
In every other high-stakes industry, elite performance is coached. But in Venture, it's largely ignored. We’re suffering from the same blindspot that cost Oracle the America’s Cup despite being the better-funded by some margin.
1. "Bikes on Boats."
In 2017, Team NZ beat Oracle in the America’s Cup final 
7:1 by overcoming a bias called "functional fixedness." For 90 years, sailors used their arms for power. Team NZ realized that was backward. Legs generate more power, freeing hands for precision. They put "bikes on boats" and won. In VC, we have the same blindspot. We say we "invest in people" but treat their performance as a fixed trait. It’s back to front. If we want to win on the global stage, we have to stop leaving founders to figure it out alone and start treating them like professional athletes.
2. The 60% Opportunity
In any portfolio, up to 20% of companies will likely succeed no matter what, and ~20% will likely fail regardless. The real performance of a fund lives in that middle 60%. These are the companies that either fail or turn into "living dead" because of avoidable leadership friction. You can resurrect a lot of those companies through coaching. That’s the real unlock.
3. On Fiduciary Duty
If you claim to invest in people but do nothing to optimize their potential, are you actually fulfilling your fiduciary duty? The burden of proof shouldn’t be on why we coach. It should be on why a VC firm would choose not to pull the single biggest lever they have to control their returns.
4. The All Blacks Standard
Coaching isn’t mentoring. It isn't just telling people to do what you did. In sports, it takes a decade for a former elite player to re-emerge as an elite coach. It is a profession in its own right. If we aren't putting our coaches through a real interview process, the same way the All Blacks select a head coach, we aren't going to see transformational results.
5. Making it the Default
Stop treating coaching as a "nice-to-have" or a remedy for struggling founders. Make it the default. We made coaching a requirement for investment years ago, and it’s the biggest performance multiplier we’ve found. You don’t wait for your team to start losing before you give them a coach. You coach them because they're the best, because their performance dictates our returns, and because it is commercially irresponsible for us to continue to ignore this truth.
It’s time to stop putting the burden of proof on why we should coach, and start putting in on why we’re okay with leaving so much performance on the table.
7:1 by overcoming a bias called "functional fixedness." For 90 years, sailors used their arms for power. Team NZ realized that was backward. Legs generate more power, freeing hands for precision. They put "bikes on boats" and won. In VC, we have the same blindspot. We say we "invest in people" but treat their performance as a fixed trait. It’s back to front. If we want to win on the global stage, we have to stop leaving founders to figure it out alone and start treating them like professional athletes.
2. The 60% Opportunity
In any portfolio, up to 20% of companies will likely succeed no matter what, and ~20% will likely fail regardless. The real performance of a fund lives in that middle 60%. These are the companies that either fail or turn into "living dead" because of avoidable leadership friction. You can resurrect a lot of those companies through coaching. That’s the real unlock.
3. On Fiduciary Duty
If you claim to invest in people but do nothing to optimize their potential, are you actually fulfilling your fiduciary duty? The burden of proof shouldn’t be on why we coach. It should be on why a VC firm would choose not to pull the single biggest lever they have to control their returns.
4. The All Blacks Standard
Coaching isn’t mentoring. It isn't just telling people to do what you did. In sports, it takes a decade for a former elite player to re-emerge as an elite coach. It is a profession in its own right. If we aren't putting our coaches through a real interview process, the same way the All Blacks select a head coach, we aren't going to see transformational results.
5. Making it the Default
Stop treating coaching as a "nice-to-have" or a remedy for struggling founders. Make it the default. We made coaching a requirement for investment years ago, and it’s the biggest performance multiplier we’ve found. You don’t wait for your team to start losing before you give them a coach. You coach them because they're the best, because their performance dictates our returns, and because it is commercially irresponsible for us to continue to ignore this truth.
It’s time to stop putting the burden of proof on why we should coach, and start putting in on why we’re okay with leaving so much performance on the table.
www.batcoinz.com/p/what-would-the-world-look-like-if
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