VC out of undergrad
Hey,
I would like to ask you guys what the traditional pipeline for breaking into VC is straight from UG. I understand it's very rare.
I have a 4.0 (not sustainable) at UChicago and started working for a midwest startup in pre-seed stage for the Fall. I like it, and I'm becoming exposed to VCs and angels, which I think could be a great pedestal for future networking.
But again, I have no idea. Should I forgo the traditional IB-banking-junior-summer fling, or do keep along that track?
Any advice is appreciated. Not exactly sure what I should be asking for... but thank you.
*If you could even comment on comp, hours, lifestyle, that'd be incredible. Thank you.
VC is fun and interesting + you do indeed get quite a strong network from the job itself. My main argument against VC out of undergrad is the lack of training you may start out with. Work in VC can vary tremendously and work experience-wise, you'll get better bang for your buck having VC experience paired with something like 2 years of IB so you show you have soft skills + technicals to boot.
Lifestyle varies. Grunt work probably makes up 40-50 hours a week and ~15-25 hours a week is spent on more fun parts of the job like conferences, networking dinners, attending events, etc. Comp varies tremendously as well, especially undergrad which tends to be on the lower end. Expect 70k-90k base with 15-30% bonus
Thank you for the descriptive response.
Could you comment on what kind of training / skills IB exclusively creates over VC?
Thanks once again.
Currently in undergrad, attempting to accomplish this. Theres a lot of these posts on this forum (I know, I've posted about it before) so put the search feature to good use. That being said, what I have learned so far is basically this:
More shops are beginning to hire undergrads. Some like BVP have analyst programs although those shops have similar entry rates to top investment banks for undergrads. A slightly less competitive way (still very but not as much) is to keep track of new funds being raised. Especially for first time fund managers at smaller shops, this is a good way to find potential analyst jobs.
From what I've learned, the best way to get a job like this is to do the job in your own time for free. This means defining a vertical you're interested in, researching companies in that vertical, talking to founders, compiling a list and tracking funding rounds. Many people have suggested that an online presence helps a lot. Starting a blog to write about this stuff may sound silly compared to bankers but its a good way to show you have been interested in, and doing this work for a while.
Other ways to break in are...
- Being an integral part of a startup (almost definitely with a successful exit)
- Traditional finance like IB or management Consulting (as poster above mentioned)
- And, depending on the shop, some sort of research role (especially if its a deep tech vertical or life sciences)
Finally, the big problems with joining VC after undergrad are mainly the turnover and lack of formal training. Analysts are usually cycled out of the firms after 1-2 years and there is often no room for upward mobility. The best way to find firms where upward mobility is possible is by looking at linkedIn and seeing who, if any, have made the jump.
Would be willing to compare notes further if you want.
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