Consulting to VC - Does previous tech experience help?
I've noticed between some target MBA programs (esp deferred MBAs) and some VC firms that there is an increasing value in having built tangible experience working at Seed to Series A startups, especially within revenue/go-to-market, especially if you helped the company scale.
I wondered if any of you who work in VC have noticed any reality to those assumptions and trends. I know what pamphlets, podcasts, and LinkedIn might say, but I wondered whether it is realistic.
For some context on me, I went to a target school during the Covid years, so instead of summer internships, I stacked my experience working at tech startups. I ran the gambit of revenue operations technical consulting, product management, customer experience, and customer success.
Now, about a year post-graduation, I am working at ACN as a management consulting analyst. I plan to align with Data/AI Strategy (my undergrad was in data analytics, as was my grad cert in Data Science/ML) via the Tech Strategy & Advisory Group.
I've noticed a few great exit opps in data/biz ops/strategy/product/growth roles at large tech companies and in CVC after 2-4 years in consulting, but I'm curious about how much tech/management consulting experience translates to venture capital to the point of being able to make the jump (assuming no MBA pivot).
My current assumption is operational experience can likely be helpful if you are pursuing a VC firm that does a lot of early-stage investing. I also would assume that certain LMM PE roles, search funds, or PE roles focused on tech might be an option.
Thoughts on this? Has anyone here made that consulting > VC transition before?
It helps tremendously but not necessarily in evaluating deals. Maybe a little. But that’s the investing skill set.
The operating skillset is having a network of people from tech at a firm that becomes a good talent diaspora, having relatability with founders to better win deals, being able to give them legitimate advice to operating, recruiting, GTM etc problems that can help them succeed, etc.
IMO having both is the way to go.
Yeah, I figured the rub would likely be on the investing side. Appreciate that context!
That said, do you think pursuing an MBA could be a way to right-size that missing link? May not be direct deal experience, but it could at least fill those gaps conceptually, which could then be interwoven with my more applied understanding of startups, the tech market, and how to scale products/data/talent.
MBA won't really help that much. You learn how to do deals by doing deals. Whether or not you get it before or after mba, your calculus shouldn't be "how can I best gain the skills to do deals so I can do deals" it should be "how can I best get a job doing deals so that I can learn how to do deals". A lot of times as a junior, people take a flyer on you knowing you don't know how to do deals. Generally it's because you demonstrate network / smarts / hustle / some attribute they want (including the previous). And then they teach you. That might be pre- or post-MBA.
And some people might say pre-MBA, OK I want a guy who knows how to do deals already, I don't want to train him. Or they might say "I actually just want a smart guy I like I will train him." And the same thing will happen post-MBA. And there's an incidence rate to each that maybe other people can comment on. I think more people post-MBA will expect pre-MBA deal experience I am pretty sure. But generally you just have to find someone who wants the skills / drive / network / sector knowledge you have.
Does that make sense? It's late so can clarify if not picking up what I'm putting down.
For what it’s worth I’ve heard directly from partners of tier 1/2 VCs that most good MBA programs + even a sliver of a technical background pretty much guarantee you a VC gig after. I’m not sure why the MBA carries so much weight but it seemingly does
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