Please let me know honest thoughts: I am beginning in Industrials MF PE in the next few weeks. I'll have a great brand and deal experience on my resume. If I want to transition to one of the top VCs, which are obviously mostly focused on tech, is that possible? How would I transition from industrials MF pe to one of the top VCs? Is there a sector that these VCs focus on that the IPs would take my prior experience as additive?
Hoping for genuine thoughts here. Open to working in a lot of different sectors, but if I want to do high-quality early stage investing, what do you all suggest?
Transitioning from an Industrials-focused MF PE role to a top VC, especially one focused on tech, is challenging but not impossible. Based on the most helpful WSO content, here are some actionable insights:
Leverage Your Brand and Deal Experience: Your experience at an MF PE firm will give you credibility, especially if you can demonstrate strong analytical skills, deal execution, and strategic thinking. Highlighting these transferable skills is crucial when pitching yourself to VCs.
Build Tech Knowledge and Network: Since top VCs are predominantly tech-focused, you’ll need to immerse yourself in the tech ecosystem. This could involve:
Target Relevant Sectors: While your Industrials background may not directly align with tech, you can position yourself as an expert in sectors where Industrials and tech intersect. For example:
Gain Operational Experience: VCs often value operational experience in addition to investing experience. Consider working at a tech startup in a strategic or operational role to bridge the gap between Industrials PE and tech VC.
Focus on Early-Stage Investing Skills: Early-stage investing requires a different skill set compared to PE. Develop expertise in areas like:
Leverage Your Network: Use your PE network to connect with VCs. Many PE professionals transition to VC by leveraging relationships with portfolio companies, co-investors, or advisors who have VC connections.
Consider an MBA: If you’re open to pursuing an MBA, it can be a great way to pivot into VC. Top programs often have strong VC networks and can provide access to internships or on-campus recruiting opportunities.
Be Strategic About Your Story: Craft a compelling narrative about why you’re transitioning to VC and how your Industrials experience adds value. For example, you could position yourself as someone who understands complex supply chains or industrial processes, which could be critical for evaluating startups in those spaces.
Ultimately, transitioning to a top VC will require a combination of strategic positioning, skill-building, and networking. By aligning your experience with sectors or trends that VCs care about, you can make yourself a more attractive candidate.
Sources: How do people narrow down PE funds they want to recruit for?, HF to PE post-MBA - my story and seeking advice (long-time poster)!, Breaking into Venture Capital out of Undergrad??, Transitioning from IB/ER to HF Series - Part 2: Where to Interview and Behaviorals, Moving from Asset Management into IB / PE
Start networking now. I'd focus on reaching out to partners and firms that specifically focus on industrial-tech to start. I'm not sure why you're going into industrial MF PE if your goal is to be an early stage VC. That's literally the opposite direction, skill set, and risk profile.
Taking a step back -- Why do you want to be an early stage VC investor?
It's not impossible to go to a later stage or growth-focused firm but I've rarely seen anyone with your background go early stage. Why do you specifically want to shift industry and stage so dramatically?
Without that information it's going to be hard to give you advice that addresses your gaps and motivations to get there.
I fell under the pressure of OC recruiting and signed a good offer. Since then, my interests and realizations about long-term career have changed
I think the first thing you should do is focus on killing it in your current role. I worked at a top tier VC and everyone that we did bring in from PE were all top of their cohorts focused on tech. First step is to be really good, second step is to parlay that into a pivot to tech. Maybe go to bschool and see if that helps, though we never hired anyone with an MBA.
People come to us via
They simply know more about an important tech area, something we are lacking in that field
We have invested with them before and know how they work
It's more common for a VC investor to go to a company/startup
Some of our staff indeed have PE experience, but they worked in VC before joining us.
Very underrated, but network your way into a Series A/Series B company with high conviction/a tier 1 VC leading their last round. Gain operator experience there for 2-3 years and then start looking to VC once you learned a bunch there are start to tap into the entrepreneurship ecosystem.
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