Path to VC

I am a rising senior at H/Y/P/W. I ultimately want to work in VC in NYC. Post grad I would like to spend some time traveling or living somewhere in Europe. What are some potential roles/grad school routes I could take to set myself up for a career in VC while spending some time in Europe?

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Based on the most helpful WSO content, here are some insights and potential routes to set yourself up for a career in Venture Capital (VC) while spending some time in Europe:

Potential Roles and Routes:

  1. Investment Banking (IB) or Private Equity (PE) Roles:

    • Transitioning from IB or PE to VC: It's generally easier to move from PE to Growth to VC than the opposite. This is because the market is specific, and you don't build as much of a technical skillset in VC since you don't use debt and invest in early-stage companies.
    • Best Firms in London: Some of the top VC firms in London include Balderton, Accel, Atomico, and Index Ventures. Other notable VCs in Europe are Eurazeo, Northzone, Global Founders Capital, DN Capital, Alven, Point Nine, and Partech.
  2. Networking and Warm Introductions:

    • Importance of Networking: Most VC jobs are secured through heavy networking and warm introductions. The processes are not as structured as in private equity, where you have clear opportunity windows.
  3. Graduate School Routes:

    • MBA Programs: Consider enrolling in a top MBA program in Europe, such as INSEAD, London Business School, or IE Business School. These programs have strong networks and can provide valuable connections in the VC space.
  4. Internships and Early-Stage Roles:

    • VC Internships: Look for internships at VC firms or startups in Europe. This can provide hands-on experience and help you build a network in the industry.
    • Roles in Startups: Working in a startup, especially in a business development or product management role, can be a good stepping stone to a VC career.

Considerations:

  • Compensation: The average compensation in VC is significantly lower than in IB and PE. For example, it is frequent to hear Senior Associates earning around £55k in Europe.
  • Geographical Preferences: If you are interested in spending time in Europe, consider cities with a strong VC presence such as London, Berlin, or Paris.

Summary:

To set yourself up for a career in VC while spending time in Europe, consider starting in IB or PE, leveraging networking opportunities, pursuing an MBA from a top European school, and gaining experience through internships or roles in startups. Focus on building a strong network and gaining relevant experience in the European VC ecosystem.

Sources: How to land a job in Venture Capital in Europe (London)?, Current VC associate taking questions, How much travel is there in Venture Capital?, https://www.wallstreetoasis.com/forum/venture-capital/career-in-vc?customgpt=1, Breaking into Venture Capital out of Undergrad??

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Plenty of larger US firms (Accel, Sequoia, Index etc) will have teams across geos. A good chunk of your dealflow, especially as you get more senior, becomes local though. If you spent 5 years in the Bay Area and then move to London to the European deal, your network takes a discount. It is however feasible once you get work experience at one great fund to move to another one, also across the pond.

Almost all top funds here in London hire MBB (Mainly McK) + a few years at a startup / IBD + a few years of startup types of profiles. I would try to start your VC career either at an elite US firm and then move over, or just try to start at a very strong European fund directly. Your network will be more local than you think, and it takes a while to fully develop, so the more years you spend in the ecosystem you want to stay long term the better your VC career will likely be.

 

Helpful! I did 4 years in IB at a BB and then spent the last year trying to start my own start up - is that a decent background for a top fund?

Just getting started here, so unsure how the recruitment works? Based in Europe, so looking in London - but is it cold email / HH? Thanks a lot

 

Yes it is, they want to see a demonstrated interest in startups (and you tick that box). The better the startup did, the more brownie points you get.

Most larger VCs have an in-house talent team that helps with recruitment, but a large part of candidates will come from network so networking will also help a ton. Feel free to DM me if you want.

 

I'll offer a counter view. I don't know if living/traveling in Europe is very conducive to a future career in VC (I have a bias here due to the industry sectors I cover). A lot dealflow and work comes from city-centric networks, and some of the best VCs I know have immersed themselves in the Bay Area or NYC startup communities. It's tough to do all that from Europe. Perhaps consider spending a lot of personal time in Europe, and focusing your career prospects around NYC?

 

Similar position here but no buy-side experiences. Did 4 years at BB IB > my own start up for the past year. Now trying VC/ Growth - having difficulties gaining traction again (from my IB days) with HH, any suggestions? How would you approach those working at VC / Growth?

 

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