Why business journalists make good VCs
Megan Hornbroth of Business Insider writes about how business journalists such as former CNBC health tech reporter Chrissy Farr can easily make the transition to becoming venture capital investors.
Hornbroth writes, “Farr is not the first career journalist to make the move over to the venture side, and she is likely not the last. Earlier in 2020, TechCrunch editor-at-large Josh Constine joined VC firm Signal Fire as a principal and head of content.
“Although the two industries can be at odds on social media at times, they’re more similar than they are different. Venture capital and reporting share many core skills, such as building robust, trustworthy professional networks and heavy research. Successful reporters and successful investors aren’t afraid to pick up the phone to contact people they may not know and ask hard questions when the person on the other end picks up.
“‘I got to know people on a deep, personal level and build trust,’ Farr said of her sourcing as a reporter. ‘That’s the most important thing that will be the most helpful because we are still in a pandemic and it’s hard to network.’
“But while reporting works in hasty news cycles, venture capital firms typically operate on 10-year cycles, an abrupt shift in pace that Farr is already trying to adjust to.”
Read more here.