Am I over optimistic about my VC future?
Hello everyone!
I am a 24-year-old BBA undergraduate currently in my first year as an analyst at an average NYC-based VC firm. I work remotely since I am a non-US citizen. My career path is rather unusual because I primarily worked in marketing before starting my internship in venture capital.
I see significant potential in fields like mental health and climate-oriented initiatives, and I believe my analytical and communication skills will ultimately lead me to success.
I am struggling with my future prospects in a venture capital career. I was determined and fortunate enough to break into venture capital, but now I feel a bit lost.
What strategies would you recommend to progress further?
I also wonder:
1. Would it be wise to switch to more specialized niche sectors (e.g. mental health) within VC to develop my expertise there?
2. Would moving to the US increase my overall chances of success?
3. Do you have any general advice for non-US venture capital professionals?
Thank you!
I was in VC from 2017-2022, on the IR and LP fundraising side. If you really like it and this firm isn’t paying you way below street to let you be a “investor” just go for it and learn. Otherwise…move on dude. We are currently in an un-named tech pullback (at least the dot com bust was named). It’s an internship right? There’s too many small VC firms around and too many small companies who can’t raise money, we have a record level of dry powder sitting around yet no one is deploying again, and to top it all off…valuations of mega unicorns still seem to be falling (Other than SpaceX). Bottom line, unless you can get into a very niche valuable field or end up at a spot like insight or even a secondaries/growth late stage focused firm…who knows what firms and companies will even be left to suck themselves off on Twitter? It’s gonna be fine but only the big boys are gonna stand a chance this next year or so before the dust settles. I’ve seen too many people take advantage of smart kids pre 2022 and offer them 45k and like 60k all in NYC with “incentives” to work at their rinky dink shops.
Adding onto this, in the secondary market blue chip VC stakes are struggling to price above 50% of NAV, everyone in the market thinks VC valuations need to come down further
Hey there, future VC superstar!
First off, let me tell you that it's completely normal to feel a bit lost at the start of your career. The world of venture capital is vast and can be overwhelming, but remember, every expert was once a beginner.
To answer your questions:
Specializing in a niche sector can indeed be a wise move. It allows you to develop deep expertise and understanding of a particular industry, which can be a valuable asset in the VC world. If you're passionate about mental health, for example, you could become the go-to person for investments in that sector. However, remember that it's also important to maintain a broad understanding of the market and other sectors.
Moving to the US could potentially open up more opportunities, given that it's a major hub for venture capital. However, it's not a necessity for success. There are plenty of successful VC professionals operating outside of the US. It's more about the value you bring to the table and your ability to spot promising investment opportunities.
As a non-US VC professional, it's crucial to understand the markets you're operating in. Each market has its own unique dynamics, trends, and regulatory environment. Networking is also key. Building relationships with entrepreneurs, other investors, and industry experts can open up a wealth of opportunities.
In terms of strategies to progress further, I'd recommend the following:
Keep learning: The VC world is fast-paced and constantly evolving. Stay up-to-date with the latest trends, technologies, and market dynamics.
Network, network, network: Relationships are key in this industry. Attend industry events, join online forums, and don't be afraid to reach out to people.
Develop your investment thesis: What types of companies are you interested in? What sectors do you believe have the most potential? Having a clear investment thesis can help guide your career and investment decisions.
Don't be afraid to take risks: Venture capital is all about taking calculated risks. Don't be afraid to back your convictions and make bold decisions.
Remember, the journey of a thousand miles begins with a single step. Keep pushing forward, stay curious, and don't forget to enjoy the ride!
Sources: https://www.wallstreetoasis.com/forum/venture-capital/vc-is-a-laughable-shitshow-change-my-mind?customgpt=1, What to expect at VC interview?, Is much of venture capital just hype/a self-fulfilling prophecy?
The top VCs are the best not because of their analytical skills, communication skills, modeling skills, or their ability to evaluate GTM strategy. They aren't the best because of their niche industry expertise. The top VCs are the best because they are insanely good at stacking the deck in their favor. They know how to increase the odds of their own success.I hate to use cliches, but you really do need to be "in the arena" to ever be remotely relevant. Everything you do needs to be oriented around this. The people at top funds eat, sleep, and breathe startups and venture. Ask yourself this - is your current fund putting you in the arena where you're making a name for yourself (no, you're not too young) or are you just running cap table models and reviewing decks? If it is the latter, you might have a killer career but you're not going to be the next Theil, Khosla, Tan, Rabois, or Gurley. Position yourself accordingly.
So, with that being said, I'll try to answer your questions:
1. To me, this reads as "should I join a specialist fund or should I join a generalist fund". There are specialist funds that do well, but the top funds on the planet (e.g. KP, FF, etc.) tend to be pretty generalist. From what I've seen, the true specialists come from and/or have worked in industry. It is going to be hard to pass yourself off as a climate tech or mental health specialist if you've never helped build a company in the space.
2. Yes. No question. Just don't move without a plan.
3. Move to the United States or get tight with a satellite office of one of the top US funds.
If you're interested in those industries, go do everything you possibly can to make a name for yourself and build a network that is unbeatable and truly defensible. In parallel, get yourself to a platform (either a fund or legitimately promising startup) where you can start to leverage this network and actually prove that your specialty is useful.
If I were you I'd join a startup. This might get me lit up in the comments on this forum, but so be it. If your fund is legit (important) you should be able to bounce back to VC relatively easily, and operating experience will make your industry focus somewhat meaningful.
For high-level context, I work directly with VCs every day (as colleagues and investors) and just raised a large round. I don't claim to know a lot, but I do know that VC is the most network-driven investment strategy on the planet. Get on that early.
Yep I’ll add on other than the micro vcs the new number 1 due diligence research that’s 95% of the decision to invest (I’m being very serious) is “which top tier VC invested in this”. Look where that gets us we have that J.P. Morgan acquisition fraud, theranos, We Work, rent the runway and my favorite FTX!! Before I switched my career the majority of my last conversations were still about goobers offering their new shit coins or crpyto tokens and this was months after FTX collapse. The industry is resetting again. If you grind this stint out become a high rank or jump to a major spot as an associate you’ll be learning a lot and be shielded from the consequences of upper management asleep at the wheel.
Thank you for your comment.
My VC doesn't put put me "in the arena", rather load me with DD, and deck reviewing. And though they aren't well known, I think I can leverage their name while applying to other funds, since they they've been around since 2000's and have a solid IPO/M&A portfolio.
I liked your input on a generalist fund over a specialist one. I think building a solid background in a generalist VC/GE will provide more safety and optionality for my future, in case I don't succeed in mental/climate tech space to be able to "bounce back to VC relatively easily".
So in the short term I will concentrate on applying to "legit" VCs. I also will move to the US next year, so thanks for propping up.
I wonder if switching to GE will put me in a better position comparing with VC, any thoughts on this? I think like GE has more "utility" comparing with VC.
And maybe you can also advise whether tying up with my natives in VC is a good shot? Many of them have their funds in the US. Or it's better to try competing with US natives while applying for a job?
Thank you very much!
I tried to snag a startup as a CEO/CFO as a cover for shagging my would-be cween who is eventually going to control all of Medtronic and BSX and every other medtech group on the planet. absolute fucking babe
ANyway
Interested to hear why you believe mental health is an area that has significant potential from a VC perspective? Maybe I am skeptical, but I feel as though everyone finally woke up to digital health apps being more of a commodity than technology with edge and now the entire space (which includes mental health) is getting slammed.
Agree with some of the statements above around sticking it out, I hear of so many people who exit the field prematurely and thus never realize what their true potential might be. You have a long road ahead of you, if you feal like your position is going to give you the experience to make the next step, stick it out.
I can add some insight. It's a big field but not insig. Interested in why the OP picked up on it, I wound up adjacent to digital mental health startups as a burden
Well it may seem like a commodity, but there are still different technologies to deliver this commodity.
Firstly, there is nearly a billion people, 1 in 5 US adults, who grapple with mental health disorders. Reduced face-to-face communication and heightened political and economic turmoil compound this issue even more. So the market is big. Once people really wake up, e.g. stigma mostly goes away, m health tech will boom.
Secondly, high cost of therapy is what stems the growth rn. Automatization via bots / therapists' robotic hands is what can change that.
Regarding self therapy, it seems people just started using meditation/noticing/therapy apps; plus psychedelic therapy is gaining traction, e.g. ATAI (debuted on Nasdaq in 2021), or Palo Santo VC (closed 50M fund in 2022).
But all of this matters to me because I genuinely believe in mental health and want to raise awareness, whether it's through being an investor or posting on this thread, lol
100% in agreement that mental health is an issue that needs to be addressed, digital health is a great way to do so. My biggest sticking point with the space however has always been is it a good investment opportunity. I personally haven't seen anything that is differentiated in the space to the point that it deserves an investment. I struggle to understand what makes companies unique in mental health, and how that translates to significant competitive advantages over other platforms.
regarding psychedelics - yes you can claim that it is gaining traction, but ATAI has been an awful stock and not a good investment opportunity to date. Very different than the digital health platforms so not completely relevant but its not a good example to use (as of now).
If you're a junior VC investor (analyst, associate), the number 1 thing you can do for your career is to source deals. Nothing else really matters that much: market research, diligence, even portfolio support aren't really skills that are valued or quantifiable. But sourcing is. If you can find and attach yourself to great companies, you can leverage that for your whole career. Your best competitive advantage is time: you're young, I'm assuming without kids/family, and don't have other obligations at your firm (fundraising, LP relations, operations, HR, board obligations). You can 100% focus on finding & meeting founders. Lean hard into that.
what country are you working in? Sounds like you may be from India or Israel. I work directly with those 2 fields (m healtlh & Climate ironically i have to update my profile)
I've been nomading for the last 2 years, and I'm now in Armenia.
Would love to discuss more about m health VC prospectives.
Perhaps you could reach out to me via DM? I'm new here and haven't quite figured out how to do it yet, lol.
Aspernatur totam explicabo expedita qui dolorem consequatur. Velit dolores eum sunt exercitationem aspernatur perspiciatis. Quis animi ut mollitia.
Quo est fugit nam consequatur aut. Nihil et cumque dolorem autem omnis.
Neque labore consequatur quia esse dicta temporibus accusamus. Dignissimos nulla voluptatum necessitatibus repellendus earum quasi aut qui. Vitae quae earum quo sed et in sunt reprehenderit. Doloribus voluptas pariatur saepe soluta. Aut maiores corporis excepturi nihil necessitatibus ea.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...