“Deals rarely fail because of the figures – they fail because of how people communicate, negotiate and build trust with one another.”
This sentence has accompanied me for many years. And the longer I work with entrepreneurs, investors and fund managers, the clearer it becomes that it is true. Of course, Excel models, performance expectations and synergies play a role. But when it really matters – at the negotiating table, in discussions between founders and investors, in the moments when decisions are made – other factors are ultimately decisive: persuasiveness, relationship building and trust.
The Hard Side: Facts, Models, Processes
I don’t want to downplay the importance of hard facts in the VC business. Without a deep understanding of fundraising, portfolio management and exit strategies, it simply won’t work. This is the necessary groundwork. However, in my experience, these facts alone do not explain why an investment ultimately succeeds or fails. Because capital does not move in isolation. It moves people, ideas and entire systems.
Why Soft Skills are Crucial in VC
In VC, we encounter situations in which traditional numerical logic reaches its limits:
Three Key Areas of Expertise That Are Crucial for Me
Looking back, I would identify three key areas of soft skills in VC:
Ideas don’t just have to be good, they must be presented in a way that others will believe in them. This applies to founders as well as to investors regarding their LPs.
Any collaboration is also a relationship. And relationships are rarely free of conflict. Success comes to those who provide clarity, take a stand for their positions and build bridges at the same time.
Investors lead without a traditional hierarchy. Influence is built through inspiration and trust. If you can empower founders both financially and personally, the chances of achieving mutual success increase significantly.
What I Have Experienced Myself
I remember investments that initially seemed weak on paper, but which went on to become huge successes thanks to the strong relationship between investors and founders. I have also seen that perfect figures were not enough due to mistrust or failed negotiations. These experiences have shaped me. Figures are important, but it’s people who make the decisions.
My Contribution to the CVCSE Program
This is precisely where I step in with my “Leading Success” module in the new Certified Venture Capital Senior Expert (CVCSE) program at the Frankfurt School of Finance & Management. While other modules deal with hard facts, my focus is on soft skills. We specifically address questions like:
It is important to me that participants not only excel analytically but also master the human side. Because it is precisely this combination that makes all the difference.
Conclusion
Venture Capital is about investing in the future. However, the future cannot be created using Excel spreadsheets alone. It is shaped by people who can build trust, resolve conflicts and inspire others with their ideas. This is why I firmly believe that VC needs both hard facts and strong interpersonal skills. I see my contribution as promoting and passing on this balance, both in the Frankfurt School program and beyond.
You can find more information about the Certified Venture Capital Senior Expert (CVCSE) program on the Frankfurt School website.
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