When I was selected for the Defense Ventures Fellowship through Shift and AFWERX, I was excited for the opportunity to work with and learn from some of the best minds in the venture capital (VC) industry. The fellowship is an immersion program designed to place active-duty service members in VC and technology companies across the U.S., with the goal of bringing commercial trends and innovation to the Department of Defense.
To say that my time with JetBlue Ventures has been valuable to me, both personally and professionally, would be an understatement. Although my immersion with the firm was just six weeks, I have been welcomed as a new member of their team and brought into their normal business processes seamlessly.
Working at JetBlue Ventures has provided me many opportunities to learn more specifically about how a corporate venture capital (CVC) firm operates. During the team’s annual New York offsite I was able to meet JetBlue leaders and learn their perspectives towards technological innovation, as well as how JetBlue Ventures can best support their business objectives. I was also given the opportunity to attend TechCrunch Disrupt and hear from some of the brightest minds in the VC world; an opportunity I wouldn’t have been exposed to without the team.
Along the way, I’ve learned a few “big picture” lessons that I believe will benefit both myself and the Department of Defense.
Corporate venture capital is difficult, but could provide the best platform to support emerging startups.
Venture capital on its own can be a hard to navigate industry–finding the right startup to invest in that you believe will provide an exit opportunity to return the entire fund is challenging. Now consider the CVC model–not only does the startup need to provide successful financial returns, but also provide a strategic advantage for the parent company. This added dimension makes the pool of feasible investments significantly lower.
The key advantage that a CVC can provide to a startup is the connection to the parent company, as well as other firms in the industry. JetBlue Ventures’ portfolio companies have an immediate platform to access JetBlue Airways and other major players in aviation from day one.
Asking the right questions is a skill that is critically important in venture capital, but it takes time to develop.
The initial evaluation of prospective investments begins with an intro call. I learned quickly that asking detailed questions regarding each aspect of the business is the only way to truly understand how it works. This seems like common sense, but the difficulty lies in knowing which questions to ask and when. When working with the JetBlue Ventures team, I observed the right way to do this and now have the foundation to continue practicing this skill.
Investing is just as much about professional relationships as it is about the actual technology or product.
Whether you’re an investor sourcing a startup or a founder raising your next round of financing, having a strong network to call upon is critically important for success. Of course, having a technologically superior product or solution is still essential, but it’s enhanced by a strong personal and professional network. You never know when or where the next lead may come from, which is why maintaining relationships is so important.
My time with JetBlue Ventures has presented me with a great learning experience and more opportunities than I imagined I’d have through the Defense Ventures Fellowship. I’m very thankful to the JBV team for teaching me about venture capital and giving me an avenue to put my skills to the test.
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