In this paper we explore whether the experience as a founder of a venture capital-backed startup influences the performance of founders who become venture capitalists (VCs). We find that nearly 10% of VCs were previously founders of a venture-backed startup. Having a successful exit, having gone to a top school, and being male increase the probability that a founder transitions into a venture capital career. Skill as a founder carries over to skill as a VC. Accounting for higher observable deal quality of successful founder-VCs (SFVCs), their investment success rates are 4 percentage points higher than professional VCs. On deals in the industry of their startup, SFVCs are more successful by 8 percentage points. Finally, we use two methodologies—a novel instrumental variable framework and a structural model—to explore what drives this superior performance: unobservable deal quality or post-investment value-add. While both mechanisms find some empirical support, the evidence in favor of unobservable deal quality is stronger.