Partnership Judo: Don't work against people when vying for a partnership position

Is your firm feeling like “Two VCs enter, one must leave” given the limited number of partnership slots? It doesn’t have to be that way.

Venture Capital Is a Team Sport: Navigating the Partner Track with a Collaborative Mindset

I was talking to one of my VC coaching clients—a recently promoted young principal at a firm that's likely to raise a much bigger fund next time around. This person was feeling anxious, not just about the competition between themselves and a peer on the team, which was causing some internal friction, but also about the threat of a partner being brought in from the outside.

While the reality is that it’s unlikely they would actually make partner in the next fund, the concern was that if they added someone external, it might block their path to partnership in the future. 

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My client asked me how they could position themselves more strongly *against* this other principal and defend against the threat of a new partner joining the firm.

I suggested they learn Judo. 

Instead of going against the grain, fighting something that seemed unstoppable, they should figure out how to go with the flow–to use the momentum of what’s inevitably going to happen to your advantage.

Judo means “gentle way”. For anyone who knows me, that’s pretty much the opposite of how anyone might describe me in a team dynamic–but my “bull in a china shop” mentality hasn’t always served me well in my career.

Let my mistakes me your benefits.

When I researched Midas list-level performance, I was surprised about how many partners told me they attributed the strength of their team to much of their success. When the best companies run by the best founders stand out, it takes a team rowing in the same direction to win the deal, regardless of whose name ultimately gets attached to the attribution. Winning the best deals requires the entire firm—all of their collective networks, insights, and resources. 

Success Breeds More Opportunity

Here’s a hill that I’ll die on as well:

Your venture career is better off if you're working alongside the best possible people. The more of them there are that perform up to the kind of level where they have a shot at bringing in a fund-returning deal, the better it is for you. 

Remember, when, at best, only about 20% of firms ever make it to a Fund III, there’s more of a chance that your path to partnership is blocked by the death of your firm than by the presence of another investor in your way.

Plus, isn’t this what we tell founders?

“Go get the best people!”

Growing up as a Mets fan during the Wilpon ownership era, I was always demoralized when my crosstown rival Yankees would bring in other teams’ closers to pitch the 7th inning or somebody else’s #5 hitter to play a platoon role. They had an embarrassment of riches talentwise and that’s why they won—because the random “next guy up” was even better than your best guy on his best day.

What this also means is that other firms are going to look to your firm to poach. If your team is known for having a ton of really smart people, that’s going to make you a more attractive candidate by association—not to mention that you’ll still have all these great people in your network.

Partnership Is About Trust

Partnerships aren't built on sharp elbows. If your competitive instincts lead you to be less supportive of your peers, it won't just block your path to partnership at your current firm—it'll follow you anywhere you go. Other firms will ask for references. If you're seen as someone who just looks out for themselves, who’s going to want that in their partnership.

Shift from Competition to Collaboration

So what does partnership judo mean for this principal? 

I suggested that they sit down with the other principal they're worried about and have an open, honest conversation. Acknowledge the potential competitive dynamic and the downside of letting it dictate their behavior. Then, figure out how to make each other better. Raise each other's game to such a high level that the partnership conversation naturally includes both of them—especially if they have non-overlapping focus areas. Maybe they could each specialize in a different, but equally important focus area of the firm.

Does this always work? No. Sometimes, your counterpart doesn’t want to play ball—or you feel like someone is actively working against you. I think the high road is the only way to win this game in the long term. If you’ve got someone negging you in a partner meeting, you can get visibly frustrated, which isn’t going to help you signal confidence in your deal, or you can clap back with mic drop answers. Make them feel silly for challenging you and assuming you hadn’t already anticipated their question and done extra homework to nail a response.

And, if they're worried about an external hire taking the partner spot? Go find that person. Identify the candidate they'd love to learn from and work alongside—someone who will not only add value to the firm but also support their development and future growth–and play a part in actively recruiting them to the firm. If the firm is looking outside anyway, it might as well be a friendly that feels like they owe you for helping them land their spot. 

Maybe that sounds a little extreme. If nothing else, at least figure out the 2-3 people who would make you a little nervous if they showed up in an interview—the folks who are setting the bar. Dig into what makes them effective, why they’re winning, and use that as a blueprint to sharpen your own edge.

If a firm does bring in a new partner, that,“Why not me?” question might actually serve you well. Instead of drifting in the woe, ask yourself that question for real. Do a serious comparison about what anyone would objectively see in this partner and where you still need work. Level setting is incredibly difficult, so having someone “GP level” to use to set your personal goals against can be very helpful.

Play the Long Game

Venture capital is a long game. If you consistently deliver great work, act as a true teammate, and help others succeed, you'll get recognized. Of course, it may not come at your current firm—or you may wind up having overlapping interests with someone who has more experience than you. Just because you feel like your upside is higher somewhere doesn’t mean your success in this industry will come from petty, zero-sum thinking. 

It comes from building relationships and reputations over decades.

So instead of worrying about someone blocking your path, focus on how you can make the team better. Great teams win, and when the team wins, there's more than enough success to go around.