I see an interesting dynamic resurfacing in venture investing: people are confusing velocity with haste.
They are mistaking the discipline of moving fast for the recklessness of insufficient due diligence.
Table of Contents
The 2021 Playbook
We saw this play out in 2021.
Two-day term sheets. Sky-high valuations.
Investors writing checks after 72 hours of diligence.
Founders are optimizing for speed over substance because the market rewards momentum over discipline.
The outcome was predictable: billions in write-downs, mismatched partnerships, and companies that never should have been funded.
History Repeating
The same behavior is creeping back.
Investors and founders alike are imposing artificial deadlines.
People are rushing to meet them.
Everyone is trying to look decisive rather than thoughtful.
Energy Allocation
I see venture investing as a zero-sum game.
You have 100 energy points to spend.
That allocation will be used up.
Either in due diligence before capital is deployed.
Or after it is deployed, when you find the skeletons in the closet.
I prefer option 1.
True Speed
Speed, done right, is about compressing cycles while maintaining rigor.
You move faster by eliminating friction, not by skipping steps.
OODA Loop: A decision-making framework that stands for Observe, Orient, Decide, Act. It emphasizes rapid cycles of assessment and action while maintaining clarity at each stage.
Ye old “OODA Loop.”
You still ask the same questions, validate the same assumptions, and check the same boxes.
Execution velocity is an advantage only when it preserves quality.
Otherwise, it is just acceleration toward a bad decision.
Conclusion
True velocity in venture investing means compressing cycles without compromising rigor.
The energy you spend will be allocated either upfront in proper due diligence or later when problems surface.