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11% Failure Rate: Notes From A VC Who Doesn't Fit The Mold

The article titled "11% Failure Rate: Notes From A VC Who Doesn't Fit The Mold" by Sharon Vosmek, published on Forbes on June 24, 2025, provides an insightful look into the world of venture capital (VC) through the lens of an unconventional investor. Vosmek, who identifies as a woman of color in a predominantly white and male industry, shares her unique perspective and experiences, highlighting the challenges and successes she has encountered. The article delves into her investment philosophy, the importance of diversity in VC, and the lessons she has learned from her journey.

Vosmek begins by discussing the 11% failure rate mentioned in the title, which refers to the percentage of her investments that have not met expectations. She emphasizes that this rate is significantly lower than the industry average, which often hovers around 20-30%. Vosmek attributes her success to her unconventional approach to investing, which prioritizes diversity, inclusion, and a deep understanding of the markets she invests in.

One of the key themes of the article is the importance of diversity in the VC industry. Vosmek argues that the lack of diversity among investors leads to a lack of diversity in the startups that receive funding. She points out that women and people of color are significantly underrepresented in the VC world, which in turn affects the types of companies that get funded. Vosmek believes that increasing diversity among investors will lead to a more diverse and innovative startup ecosystem.

Vosmek shares her personal story of breaking into the VC industry, which was not an easy feat. As a woman of color, she faced numerous barriers and biases. However, she persevered and built a successful career by focusing on her strengths and leveraging her unique perspective. She emphasizes the importance of resilience and determination in the face of adversity.

The article also delves into Vosmek's investment philosophy. She believes in taking a hands-on approach to investing, working closely with the founders of the companies she invests in. Vosmek sees herself as a partner and mentor to these founders, providing guidance and support as they navigate the challenges of building a startup. She also emphasizes the importance of understanding the market and the problem that the startup is trying to solve. Vosmek believes that a deep understanding of the market is crucial for making successful investments.

Vosmek also discusses the importance of due diligence in the investment process. She believes that thorough due diligence is essential for identifying the most promising startups and avoiding potential pitfalls. Vosmek shares some of the key factors she looks for when evaluating a potential investment, including the strength of the founding team, the size of the market opportunity, and the company's competitive advantage.

Throughout the article, Vosmek emphasizes the importance of learning from failure. She believes that failure is an inevitable part of the VC process and that the key is to learn from these failures and use them to improve future investments. Vosmek shares some of the lessons she has learned from her own failures, including the importance of being patient and the need to be willing to pivot when necessary.

The article also touches on the current state of the VC industry and the challenges it faces. Vosmek believes that the industry is at a crossroads and that there is a need for change. She argues that the traditional VC model, which focuses on high-risk, high-reward investments, is no longer sustainable. Vosmek believes that the industry needs to shift towards a more sustainable and inclusive model that prioritizes long-term value creation over short-term gains.

Vosmek also discusses the role of technology in the VC industry. She believes that technology has the potential to revolutionize the way that VC firms operate, making the process more efficient and accessible. Vosmek shares some of the ways that she has leveraged technology in her own firm, including the use of data analytics to identify promising startups and the use of online platforms to connect with founders.

Throughout the article, Vosmek emphasizes the importance of giving back to the community. She believes that successful investors have a responsibility to mentor and support the next generation of entrepreneurs. Vosmek shares some of the ways that she gives back, including mentoring young founders and investing in startups that are working to solve social and environmental problems.

In conclusion, "11% Failure Rate: Notes From A VC Who Doesn't Fit The Mold" provides a compelling and insightful look into the world of venture capital through the eyes of an unconventional investor. Sharon Vosmek's unique perspective and experiences offer valuable lessons for anyone interested in the VC industry. The article highlights the importance of diversity, the need for a more sustainable and inclusive investment model, and the power of resilience and determination in the face of adversity. Vosmek's story is an inspiration to anyone looking to break into the VC world and make a difference.

Read the Full Forbes Article at:
[ https://www.forbes.com/sites/sharonvosmek/2025/06/24/11-failure-rate-notes-from-a-vc-who-doesnt-fit-the-mold/ ]