The 5 Tools of Venture Capital

Scott Lenet – Even if you aren’t a baseball fan, you may have heard of a “five-tool” player, because the rubric was debunked by general manager Billy Beane of the Oakland A’s, as reported in the captivating business book Moneyball by Michael Lewis. For the record, the five tools of baseball are 1) hitting for average, 2) hitting for power, 3) running, 4) fielding, and 5) throwing.

Like baseball, venture capital investing also has five main skills: 1) sourcing, 2) evaluating, 3) transacting, 4) managing, and 5) exiting. Each is essential to being a successful investor. If you are thinking about a career in venture capital, or are an entrepreneur who wants to grasp how the industry works, understanding these roles can provide a useful perspective on the business.

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