Product Manager role in large VC fund
Came across an opportunity to become a product manager role at what is a fairly large VC I guess ($11b AUM, but not sure where that ranks as not closely familiar with the industry).
Role would involve identifying the business processes and internal tools used for investing that could be automated and further developed. There is no other product manager at the moment and I'd work very closely with the CTO. I understand I would have pretty much a blank slate to find these opportunities and drive their development alongside a technical team.
Trying to gauge whether this is a great opportunity or not. I'm actively trying to break back into finance after a brief stint as a tech analyst in a graduate programme at a BB IB but I admit it is very difficult to find product manager roles in finance in general, let alone at a big VC fund.
Any thoughts would be appreciated, cheers!
Based on the most helpful WSO content, this opportunity seems quite unique and potentially rewarding. Here’s why:
Role Uniqueness: Product manager roles in finance, especially at large VC funds, are rare. The chance to work at an $11B AUM VC fund with a blank slate to identify and automate business processes is a significant opportunity to make a tangible impact.
Strategic Exposure: Working closely with the CTO and having autonomy to drive development projects positions you at the intersection of technology and finance. This could provide valuable insights into how a large VC operates and allow you to build a strong network within the industry.
Career Transition: If you're looking to break back into finance, this role could serve as a bridge. It combines your tech experience with a finance-focused environment, which could make you a strong candidate for future finance or strategy roles.
Skill Development: The role offers a chance to hone a broad skill set, including process optimization, stakeholder management, and technical collaboration. These are highly transferable skills that can open doors to other high-level roles in finance or tech.
VC Industry Insight: Being embedded in a VC fund gives you exposure to deal flow, portfolio companies, and investment strategies, which could be invaluable if you aim to pivot into investing or other finance roles later.
However, consider the following: - Long-Term Fit: If your ultimate goal is to move into a more traditional finance role (e.g., IB, PE), ensure this role aligns with that trajectory. While it’s a great opportunity, it’s not a direct finance role. - Compensation and Growth: Research the compensation and growth trajectory for product managers in VC funds. While the role is unique, ensure it meets your financial and career expectations.
In summary, this seems like a strong opportunity to leverage your tech background while gaining finance exposure. If breaking back into finance is your goal, this could be a strategic move, especially given the rarity of such roles.
Sources: Automation in fundamental finance roles, Q&A: Returning to PE After a Year and a Half at a Series C Startup, First Year IB Analyst Trying to Move into Tech, Q&A: I’ve held Pre-MBA MM LBO, Growth Equity and Venture Capital investment roles for funds with $500M+ AUM to $5B+ AUM, Tech As An Alternative to Finance
Hey, so this seems like quite an interesting opportunity you have - and answering this from the perspective of having done my thesis in data-driven VCs and talks with numerous individuals in the industry.
So the first thing to point out is that this will clearly be more of a tech oriented role than direct entrance into VC investment. It sounds like initially its going to be a BA style role where you'll take a look at internal processes across sourcing - diligence - portfolio ops, and the rest of the investment chain to see where more tech driven processes can be brought in, before then trying to implement then. Its a fairly trending topic among VCs for now, so I imagine job security will be quite decent, but it'll be a much much less digitally mature envornment than what you're used to at a BB, and stakeholder buy-in could be patchy and at times frustrating to navigate.
While so far it may sound a bit too techy for your aspirations, the advantage of being in VC is the closer relations between different departments, and general techy inclinations of partners in these firms means that it'll be much more achievable to make the jump across to investment teams than it would at a PE/IB. Imo, if you're able to show a clear desire to involve yourself in investment decisions and proactively showcasing a clear understanding of what a good investment entails you should be able to slowly bridge the gap.
Hi, thanks for your detailed answer - definitely insightful.
I would be happy with the role as it shapes up, my only concerns are:
I feel that the benefits of VC roles in general is the ability to network with a wide variety of people - and this is why I'm concerned about being siloed as part of a single team that does not have much contact with external stakeholders.
I also wonder how much positive impact such a role would carry on my CV - as ultimately I'd like to transition into the hedge fund industry and I feel that such a transition would be a more natural step coming from VC than from other standard product manager roles.
Valid concerns but I do generally think its quite a good move. To directly address the questions:
Every tech VC employee i've talked to has been deeply involved and collaborates consistently with other areas of the firm so I wouldn't be too worried about getting siloed.
Generally speaking, platform roles (i.e. non-investing) at VC firms are dead end opportunities. They don't pay particularly well, you won't get treated well (think how back office IT is treated at investment banks), and you won't have growth opportunities. Plus you won't have as much exposure to the investment side as you think, as these roles tend to be more silo-ed. There are many firms where the platform people aren't allowed in partner meetings and not invited to attend portfolio review sessions or board meetings, which is where much of the VC exposure happens. There is a bit more security than investing roles in that they're not strictly "up or out", and your role isn't solely tied to sourcing or investment performance. But platform roles are the first that are cut in downturns or if a fund struggles and has to downsize (see what happened in 2022 onwards, when a ton of large VC firms fired most of their platform teams). I would not recommend these roles generally speaking.
Thanks - this is very helpful although I now have two very different perspectives, one for it and one against it, so will have to spend some more time thinking about it.
What do you want to do long term? If you want to use this as a springboard into a role at another startup, it could be a good way to get exposure to a range of startups (both the firm's portfolio companies as well as deals they evaluate). But I wouldn't treat it as 1) a long term role with career growth or 2) a path into VC investing.
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