Hi Everyone,
I looked everywhere and it seems that for my question the only possible way to break into VC from IBD is to be at Qatalyst or TMT BB. But is it? I come from an European background and I am really not too keen on doing an MBA, but I really want to get into VC (doesn't need to be the like of Sequoia, etc.).
Is there anybody here that can give me some pieces of advice?
Thanks!!
it's possible if you network a lot and can sell yourself well. try to get warm intros to VC funds of interest.
It happens often. You may have to look at the smaller funds ($100m per fund), but I've had analyst and associate roles hit my inbox with friends saying "We just turned the resume drop on, but please email me if you know a strong candidate" every week for the past three months.
Bain is one of the few firms that really likes associates with prior banking experience. They are likely to insist you be in Boston or SF, but I do know a guy who was able to push for NYC if that matters to you. Accel, KPCB, and Sequoia are all predictably brand-focused and tend to recruit from GS TMT and MS Menlo.
I'm not too familiar with the London VC scene, but I did meet a guy there who left his MM IBD analyst stint for a VC analyst role after only four months.
In short, it's not impossible. It really comes down to whether you can get strong intros/recommendations, whether you are articulate about a few spaces and startups, and whether the guy on the other side of the table likes you. When I say articulate, that means you need to be able to speak enthusiastically and thoroughly about two or three companies in the same space (and constructively as well). You aren't expected to know privileged and proprietary and perfectly up-to-date info on such young, private companies, but things like the strength of their founders relative to the opportunity they're pursuing, their go-to-market strategy, how they manage burn, what metrics you'd examine before their next financing, and potential acquirers that might be looking at them already.
To get all that, you need to have a pretty strong network (so you can hear things from as close to the horse's mouth as possible), decent free time to be getting coffees or attending industry events (admittedly tough to do with a job in banking), or great relationships so people are sharing pitch materials or quarterly board decks with you.
VC jobs are few and far between, and the best firms aren't looking to add someone simply to add someone. Very often the firm isn't even publicly hiring, but if someone stellar comes along, they'll look to bring them on board. Management fees have to stretch farther when the capital base is smaller (2% on $350 total AUM across three funds gives you less to play with than 2% on three buyout funds that are all over $500m). That means fewer seats exist, and when you have more firms today setting aside dollars to hire people for 'platform' and infrastructure teams supporting their portfolio companies, that means there's even more limited headcount in investing roles.
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