💬 From Our Team

Venture capital is more than just investing in startups. It is about shaping the future by backing visionary founders, solving big problems, and building companies that change how we live and work. For curious, ambitious people who want to be close to innovation, VC offers a front-row seat to what’s next.

🧩 Let’s break it down

• Venture capitalists (VCs) are investors or firms that manage money from limited partners (LPs) such as universities, pension funds, and wealthy individuals.

• They invest in startups that have high growth potential but also come with high risk.

• In return, VCs take a portion of ownership and hope to earn large returns if the startup grows significantly or gets acquired or goes public.

💰️ How Money Works in Venture Capital

1. Limited Partners (LPs) provide the money

• LPs are institutions or individuals (pension funds, endowments, family offices, etc.) who commit capital to a venture fund.

• A typical VC fund might raise $100 million from multiple LPs.

2. VC Firms (General Partners or GPs) manage the fund

• The GPs decide how to invest the LPs’ money: they scout startups, run diligence, and write checks in exchange for equity.

• GPs typically collect:

  • 2% management fee annually (to pay staff, overhead)

  • 20% carried interest (their share of profits if the fund returns money beyond the original investment)

3. Startups receive funding

• The VC fund invests in for example: 20–30 startups over a 10-year fund life.

• If some of those startups succeed (via acquisition or IPO), the fund gets a return on its equity stake.

4.Returns go back to LPs and GPs

• When a startup exits successfully, the fund receives money based on its equity.

• That money is returned to LPs first (until they get back their original investment), and the GPs then take their cut of the profits (carry).

📊 How Many VC Funds Succeed?

The venture model is power-law driven: a small number of funds and startups generate the vast majority of returns.

💥 VC Fund Return Statistics:

• Top 25% of VC funds return 3x or more over 10 years.

• Most VC funds (around 65%) return less than 2x.

• About 25–30% of funds barely return capital or lose money.

🚀 Startup Success Rates Within a Fund (In a typical fund portfolio):

• 1–2 investments out of 20+ will drive most of the returns

• 65–75% of portfolio companies will return less than invested

• 10–15% will generate outsized returns (10x+)

That’s why VCs swing for home runs, not singles. One mega-success like an Airbnb, Stripe, or Databricks can make up for all the losses and drive massive fund returns. (Visible, Ideatovalue)

📖 Women in VC: Stories from the Journey (SET Ventures)

Founded in 2007 and based in Amsterdam, SET Ventures is a mission-driven venture capital firm focused exclusively on backing early‑growth, digital-first startups that accelerate the shift to a carbon‑free energy system

👉️ Emily Mellor

Role: Investment Analyst

Started in VC: February 2023

Background: Oxford MBA, consultancy background at Accenture

Passion for: Being at the centre of measurable impact

First off, what was your path to break into VC?

“After finishing my MBA at Oxford following four years at Accenture, I was ready for a new challenge. I reviewed all avenues to do work that I considered impactful. I was comparing the work environment I wanted to be in, the types of problems I wanted to be exposed to, and the speed of decision-making. The world of impact VC got me curious, so I applied to several firms in Amsterdam and was eventually hired by SET Ventures.”

You’ve been in VC for a few months now, what are some of the critical things you have learned in that short time frame?

“I think getting into VC has three different stages; each stage requiring different ways of thinking that will help navigate the process.

For the first stage of “deciding” why one is interested in VC, researching and networking with industry stakeholders is critical.

In the second stage, “applying for a job”, you’re expected to know a lot about startup news. And since VC is a small and competitive industry, you’ll be expected to complete a case. Most other entry level positions, you just learn on the job, maybe have some level of interest. But in VC, that competition means you’re expected to rationalise and contribute from day one.

In the third stage, “day 1” there is not much information available on how to succeed, and it is highly dependent on the firm. I wish I had known earlier that the bar is high, and one must be ready for a range of scenarios.”

👉️ Ellen Smeele

Role: Associate

Background: MSc London School of Economics, worked in project finance and at 4 startups previously

Passion for: People & company-building

What attracted you to a career in Venture Capital?

“My career hasn’t been linear. I’ve worn many different hats in each role I’ve had. In interviews, I am often asked what the red thread is in my resume. And that was something I struggled to define. Coincidentally, when speaking with people in VC, I realized that a “doing many different things” approach is highly valued in VC.

The combination of working with innovative people solving problems combined with climate impact, in a fast-paced, international environment ultimately attracted me.”

You’ve been with SET Ventures for 18 months now. You started as an Analyst and recently were promoted to an Associate. What is some advice you can share?

“Before applying, it’s good to realise there are significant differences between companies (or funds in VC terms). It’s important to know what type of fund you’re joining and what your typical work looks like. There’s a relatively high amount of autonomy in VC, even for juniors. This means you can achieve a lot, but to do so you need to carve out your position and be proactive as there is less of a structure to guide you than say, a corporate. But make sure to prioritise! There’s always more to do than there is time.

Also, in VC you’re appreciated for asking questions. Curiosity and admitting you don’t know something are well-regarded traits. In other industries when you’re junior you’re expected to just execute without question. Not the case in VC. Any firm should value your opinions even when just starting out. So be willing to learn, ask questions and don’t always take things at face value!”

👉️ Julia Padberg

Role: Partner

Background: MSc UCL, Corporate M&A at Kempen & Co.

Passion for: Reducing emissions through innovation

What inspired your move to VC after working in mergers and acquisitions (M&A)?

“In M&A I worked with a lot of investors like SET Ventures. When discussing their portfolio of investments, I realised VC was a sector where you work with companies on a much longer term and strategic level vs only looking at a specific transaction. Within VC you are working alongside the company to help them achieve their strategy and grow.

For me, SET Ventures felt like a place where I could have a much bigger impact on what happens to those companies and so I joined up.”

You have climbed the traditional VC ladder, going from an Associate to Partner. Can you talk about what that journey was like? Was that always your ambition?

“When I joined SET Ventures, I thought ‘I love this job. I want to increase my impact here and become a partner’. So that was indeed my ambition.

But when the other Partners actually asked me to become a Partner, I had a reality check: ‘this is at minimum a 10-year commitment’ I thought. And if you then don’t join in the next fund(s), well, your colleagues must explain why that is to new investors. So, it seems like you’re almost locked into a company for life when you become a Partner. And that to me sounded terrifying.

But after thinking about it for two years (not kidding), I realised I still loved this work so much and wanted to continue creating impact. To do that you need to be able to help your investments become successful, so it was the natural thing for me to do.

Also, as a partner you’re basically an entrepreneur. You can initiate all sorts of things to always keep things exciting and improving. Over the past 7 years at SET I’ve seen that nothing is static here!

(FemaleXFinance)

🌟 Final Thoughts

It’s hard to know if VC is the right path until you’re in it. But by asking thoughtful questions, connecting with people in the space (like us!), and staying curious, you’ll start to find clarity.

You don’t need all the answers right now, you just need the drive to explore.