"The early days of VC firms are often defined by eager and over-caffeinated engineers sitting around monitors, rather than Zoom meetings and virtual happy hours."
The Covid-19 epidemic disrupted businesses and changed the foundation of how businesses function across industries. It was a nightmare for the majority of businesses. On the other side, many people have adjusted to the home office status quo and prefer working from home since it may relieve stress, offer more quality time with family, and help them be more creative than being in the workplace. It has now become a common trend among businesses and investors, with several venture capitalists stating that they are considering not recalling all — or any — of their staff to office.
Among the many challenges of handling an at-home VC, the workforce is monitoring the progress of employees’ timelines. However, with advanced technological tools for "clocking in and out," as well as the ability to conduct multiple "in-person" meetings through video conferences, VC firm employees are still made responsible for their obligations and work hours.
REMOTE VS ON-SITE WORKING IN VC SECTOR
As business analysts, we've made various observations on the benefits and drawbacks of remote work over the years. If you operate a venture capital firm and are still deciding what's next for the future of your company's working style, here are some benefits and downsides of remote work to think about.
REDUCED OPERATIONAL COSTS
One significant advantage of remote work is that it helps you to reduce your operating expenditures. You don't have to spend thousands of dollars in rent every year, purchase and maintain office equipment and furnishings, pay for Wi-Fi, and other expenses if you don't have a physical office.
However, without a real office, your employees will not have stable work settings, and your investors will be less eager to invest in you. When you operate from a physical office, you can provide everyone with the same technology and furnishings, as well as attract additional investors (than a VC firm with no office).
When you operate a VC firm from a real office, every time you plan to recruit a new employee, you have to figure out where they'll sit in the office. You'll ultimately reach a point when your company's expansion is limited to the extent of space you have left in the building. However, there are no physical barriers to your company's development with remote work.
"You just cannot attain the same level of productivity if everyone is completely distant."
Having no physical barriers to your company's growth allows you to recruit more people, but it makes it more difficult for VC workers to interact and communicate with one another. Day-to-day communication weakens as well. It can be difficult to appreciate communication over mediums like Zoom and Slack.
"For venture investors, seeing a company's actual office, meeting the team, and seeing personally the primary hive of day-to-day activity is an important element of routine due diligence."
In short, you can't reach the same level of productivity if everyone is completely isolated. Although, investors and entrepreneurs have used a variety of techniques to meet remotely. But it's nice to have roots. That's why everyone should consider setting up a foundation for their VC firms.