Hi All,
This may be a downer. I've been at a VC fund for the last 2.5 years and was promoted to associate earlier this year. My VC fund announced that they would be shutting down around a month ago. Since then I've gotten interviewed and dinged by McKinsey (second round / quant errors) and BCG (final round / correct answers but not creative enough). Going through the interview processes gave me hope that this disaster scenario will pass, but getting rejected by BCG yesterday made the fact that I have no job real.
My question is how do people deal with the intricacies of not having a job. I know that a lot of the advice below will be "get over yourself" and "just apply and stay positive." I'm asking about the parts of the process that aren't related to finding a job, i.e. how did you budget your remaining savings, is there anything unforeseen risk to going on unemployment down the line, did you choose COBRA or Medicaid?
Also, what are some tips on interviewing and applying while unemployed? How do you speak to it while you are networking?
The VC skill set is very niche and this is basically by first job out of undergrad and the longest one I've held. What can I get after VC Analyst/Associate role without prior banking or consulting experience?
Wishing you the best of luck in finding a new job! If I remember correctly, your company should provide you with details on the COBRA benefits before they close up. However, COBRA only covers you for a limited period of time (~18 months). Though given your background, I have confidence that you will be able to find a new opportunity before then.
Budgeting will depend on how much you have in an emergency fund. Can you afford your current lifestyle with no income for the next 6-12 months? If not, you may want to look at your non-essential expenses and either cut them or repurpose them for networking/job hunting activities. I wouldn't recommend cutting your "fun" budget to $0 though, since if you commonly meet with friends for drinks or dinner, cutting that out will only make the situation feel worse for you and you want to keep your spirits up as much as you can.
Something I recommend doing to maintain your sanity would be establishing a routine. Going from knowing exactly what you'll be doing during the day to having free reign over your time can be a difficult change for many people. Consider dedicating at least a portion of your day to a similar activity to maintain some semblance of a routine, even if it's hitting the library to apply for jobs for the first half of the day.
When interviewing, remember that you are not unemployed through any fault of your own. The fund shutting down isn't really a reflection of your performance and as such, make sure to focus the conversations on your accomplishments that led to your promotion, and your performance after the promotion.
I'll never claim to be an expert, but I hope my $0.02 offers some help.
jnaz, I left IB about 18 months ago for corp dev. I was laid off six months into my first corp dev role because the company just kept underperforming, and it was obvious we wouldn't be acquiring anything anytime soon.
I interviewed with close to 20 different firms spanning the F500 when I was looking for a new role. I would either get asked about why I'm unemployed or just go ahead and volunteer that I was laid off. The interviewer always stated how normal this was for M&A and how they understood and then immediately moved on to the next question. I did not get any grief for being laid off through no fault of my own. You need to go into every interview with this mindset that you being unemployed through no fault of your own is not a big deal. It will result in you interviewing more confidently.
Your firm may provide you some severance and should provide you COBRA (they may also provide you some assistance with paying for the COBRA coverage). COBRA tends to be very expensive since your employer is no longer chipping anything in, so be sure to read through everything before signing up. I doubt you will qualify for Medicaid. As for budgeting, take a few hours and create on in Excel. You should have an emergency fund set up, but if you don't, now is a time to get a start on budgeting and seeing where you can cut costs. Also, if you do not have an emergency fund, start planning to fund one immediately upon finding new employment.
As far as tips for interviewing go, my best piece of advice is not to get desperate. You're going to go through the stages of grief in a sense where at first you don't fully realize that you're unemployed, to the hard truth smacking you in the face then, to you then desperately wanting something. Don't let this last part affect the way you interview or your judgment. If you remain confident and treat every interview like an actual interview (i.e. you're also interviewing the firm), you will do a lot better. When you finally do get an offer, carefully evaluate if this offer is something that you actually want. When I was job hunting, I received an offer early on and turned it down because it was not the right fit. It felt weird choosing to remain unemployed, but it was the right call for me then, and looking back on it, the right call for me now.
Finally, file for unemployment. This is a benefit that you've earned, so use it. Most states have a decently long waiting period before they pay anything out and will require you to log your job hunting every week. I ended up not getting anything because I received a decent severance package and was able to find a new job within two months.
General tips: + Figure out your budget ahead of time and your approach to remaining within it. I personally hate nickel/diming myself (e.g. not going out with friends, eating crap food) b/c life is short, so I'd get a roommate/cheaper apt instead if I had to. Set clear dates for taking subsequent expense-management steps (e.g. if no serious leads in 4 months then I get a roommate) + Don't get desperate. Remember that each job should last you at least a few years. Getting desperate and taking the wrong job is a waste of years of your life. I've seen people make this mistake b/c they were so traumatized at being unemployed + Take unemployment and take advantage of every possible government assistance. You paid/ will pay for it + Go hard initially, but be ready if it turns into a long slog. Be prepared to step away mentally and actually enjoy your time. Later on you will regret not taking some time off to travel, chill, and otherwise enjoy life. Obviously, the constraining factor here is how much money you have saved up + Start prepping bschool applications: you're in the age range and its a great time for a penalty free reset. I would do this and continue doing it even if you get a job soon (unless its a definite long-term/ dream job) to keep in your back pocket
Good luck man
How to Survive and Thrive During Unemployment (Originally Posted: 08/15/2012)
A few posts on layoffs got me thinking of my unemployment spell a couple of years back, and I think that now would be a good time to go over lessons that I learned to keep myself sane and productive while searching for a new job.
The big key is to look at this as an opportunity for growth rather than as an obstacle. For most of you monkeys, this is going to be a difficult view to internalize: we all place a great deal of importance on our career, otherwise we wouldn't post here.
Leaving your job may suck, but lets face it, working can suck too. So let's just jump into it: here are 6 things to keep in mind that will let you come out of this in a better state than you were in when you were beforehand. 1. Keep a Normal Schedule. Without a day job, it's very easy to lie around in bed for an hour after waking up and then waste two hours making breakfast and messing around on the computer. Before you know it it's 1:00pm and you're still in your boxers and a t-shirt (if that).
You need to impose a workday on yourself. Get 8 hours of sleep, hop out of bed immediately, and go for a walk to get some fresh air rather. You'll feel better, and after a week of this you won't be tempted to sleep in really late every day. Also, give yourself a 9-5 sort of schedule: focus on applying to jobs, networking, and other productive tasks during the day and tend to personal matters in the evening.
2. Exercise. There's just no excuse for not working out regularly. Do a combination of cardio and strength training for at least 30 minutes a day for 5 days a week: you'll lose weight, build muscle, and feel better about yourself. Exercise (combined with eating well and getting enough sleep) is also the best possible way to stave off depression and anxiety.
3. Work on Personal Projects. There's got to be something that you've wanted to learn more about, work on, or improve. Now's the time to do it. Here are some ideas:
6. Take Advantage of all Your City has to Offer. You've got to have all sorts of things that you've been meaning to do but haven't had the time to try. Grab a copy of your local independent newspaper and see what's going on this week. Just about any decent sized city should have all sorts of cheap / free things to do: author readings at book stores, museums, concerts, and so on. Of course, you can now do all of this on weekdays an beat the crowds too.
4. Meditate. The Relaxation Response was the book that first made me interested in mediation. All you need is 15 minutes and the willingness to try to sit quietly. It's a great way to rejuvenate yourself and give your mind a break.
5. Philosophy and Religion. Try going to church or synagogue. No interest in religion? Stoic philosophers like Seneca and quasi-buddhists such as
have been very inspirational to me--far more so than years of Sunday school as a kid.
6. Remain Optimistic. Everyone I've known who got laid off or fired early in their career eventually came back even stronger. Some got equal or better jobs in the industry, while others moved on to other fields. Just remember: this will get better, and if it's the worst thing to happen to you in your life so far, you should consider yourself lucky.
Notice that I didn't tell you to network with alums from your school or to polish up your resume. I'm assuming that you're smart and already doing that. Instead, I'm encouraging you to focus on all the other stuff in life that's too easy to ignore when you're working full time.
Monkeys: did I miss anything big? If you've been unemployed, what did you learn from the experience? Anything you'd do differently? How did you manage your time?