Breaking into Venture Capital out of Undergrad??
Is it possible to break into the venture capital industry right out of undergrad? And what are the best routes to take to break into venture capital?
Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
May 31, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
I mean no offense, but there is absolutely 0 chance you're breaking into VC out of undergrad from the schools you're considering in your previous posts (Nova, Bentley, Fordham, etc.) when it's already very unusual for kids from actual target schools to break into VC out of undergrad.
Hey at least you are honest lmao
I just got a VC Associate role straight out of undergrad with a mid-sized fund and it was literally all luck. I saw the posting on my campus job board, applied and emailed the contact with my own intro, and then went through the rest of the process. If you go to school in the Bay Area it helps. If you go to Stanford it really, really, really helps. The reason I got picked up from the pile is that I had experience working at several different hot startups and a buy-side tech investing internship.
The process for getting hired was also super involved. Call with an associate and then a partner. Then a prelim assignment. Then they gave me notice for the super day and a much more involved assignment to be presented the day of. Then I got grilled on my presentation, technicals (cap table/valuation stuff), industry knowledge, and brain teasers. I also went out to lunch with them and did dinner/drinks after. They really have to want to work with you when there's 10-20 investment professionals.
Alex is a great guy but a huge exception to the rule. Alsop Louie picks up these child prodigies and makes them associates (See David Mace). They're awesome and weird that way.
I wouldn't tell you to go startup internships > buy-side tech investing internship > VC associate because it is a weird case. I can explain why my path worked for the resources I had at hand and maybe that'll help you chart out your own path with the info and resources you have.
I was a technical major focused on a very specific field. I worked in a great lab and got published with that lab and on my own in that very specific field in good journals. I also took on 3 internships at three very hot startups in that field. I then accepted a buy side tech investing role with the intention of helping the firm set up their practice in that very specific field. I was then hired as a VC associate because they liked my background and potential to help them set up the firm's practice in that very specific field. It's sounds strange but I had deep knowledge and industry connections into that field. It doesn't really feel like I do, but I guess it's true.
My advice would be to look at your local VC scene. What are they investing in? If its fintech, learning the industry up and down, work at a fintech startup in operations or business development or engineering if that's your skill set. Then make yourself valuable to those VCs. That might work, but who knows if the resources are there? It really depends on your situation.
Hope that helps.
Jamiegrey pretty much gave you all the right advice. It's not impossible, but its just very rare. With that being said, if you think you already want to do VC there are some paths that prepare you for VC better than others.
Passion for investing in tech and the space and ideally a specific niche within tech is important. Read Techcrunch, product hunt, Crunchbase etc and follow companies and how they're getting funded. Most importantly read articles, talk to people, and start developing your own opinions on what you would invest in, whether or not investments are good or bad, and have some evidence to back those claims up. If you're hustling for a VC job and can write up a mock investment memo on companies that would fit the mandate of a VC firm, that can be pretty powerful if done well.
In terms of career paths to get into VC, its not explicitly black and white, but for the most part people who do Product Management tend to move into early stage VC whereas tech bankers tend to do later stage. It also helps to have a technical background of some sort. People from significant operating roles in startups also tend to move into VC, but thats a little harder to target vs some of the more traditional paths.