VC Returns Not Graded on a Curve, Says Compound's Michael Dempsey, Urging Junior Professionals to Seek Irreplaceability

New York, NY – Michael Dempsey, Managing Partner at Compound, recently shared pointed advice for individuals entering the venture capital (VC) industry, emphasizing the critical need for junior professionals to become indispensable. In a recent tweet, Dempsey articulated that success in venture capital is ultimately measured by returns, not tenure or experience, urging new entrants to cultivate unique value that makes them irreplaceable within their firms.

Dempsey highlighted a common pitfall where junior hires are primarily used to expand partner bandwidth, rather than the firm's overall capabilities. He advised, > "My best advice is become known for something so that you're irreplaceable." He further elaborated on the distinction between short-term and long-term value, suggesting that while new hires might initially perform tasks others avoid, true indispensability comes from developing expertise that the firm cannot afford to lose.

The venture capitalist underscored the performance-driven nature of the industry, stating, > "in venture, and investing, and even the world, is not graded on a curve. I don't care about how old you are. Your returns have to be just as good as the greats in order to be a good investor." This perspective suggests a meritocratic environment where tangible results supersede conventional career progression.

Compound, co-founded by Dempsey, operates as a thesis-driven, research-centric investment firm, primarily focusing on early-stage "frontier technologies" such as robotics, machine learning, and crypto. Dempsey's background, including experience at a multi-strategy hedge fund and CB Insights, has shaped his conviction in deep, independent research and a results-oriented approach, which he now applies to nurturing talent within the VC ecosystem.

His counsel resonates within a competitive landscape, encouraging aspiring VC professionals to develop specialized knowledge and a proactive mindset. The advice implies that junior VCs should actively seek areas where they can build unique expertise and contribute significantly to deal flow or portfolio value, thereby securing their long-term position through demonstrable impact rather than simply fulfilling basic operational needs.