Not in a top notch VC but definitely got a taste of the industry. I've been doing this for 1.5y and realised later stage deals is more of interest for me. I thought it was easier to make the move (having an investor background) but finding it quite tough. Is there anyone who followed this path (as opposed to the traditional IB/ Consulting rute) that would be willing to share his/her experience?
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In a similar camp, how early are you currently and how late are you looking to go?
Deffo doable if you have something to show for technical skills. More tricky if you've only ever done Seed and As and haven't really dug hard into unit economics, cohorts, gtm and top-line models. Just note that growth equity blows right now and hardly anyone is hiring. Give it a year to recover
We’re mostly doing As but fact is, we have a super rigid forecasting/ analysis and modelling process (all partners have M&A background) which I find hard to let it transpire in initial screenings!
Thanks for the heads up on the market though, it’s definitely super slow.
It's a tricky market right now, a lot of funds are hurting since the 2022 bloodbath. Early stage funds have a bit more latitude as valuations haven't corrected as hard and while fund sizes are shrinking and time between raises is increasing, there's still some appetite to hire junior talent. On the later stage side of things, it's pretty silent, nobody wants to catch falling knives, and most are waiting for a price correction since having the conversation is something nobody wants to do. A lot of tourists have left, and many growth teams are waiting it out until IPO markets reopen hopefully by Q1 next year.
As someone that has worked in early stage and now later stage VC, I do want to say they are different skillsets and sourcing and diligence looks a bit different as well. Your best bet in this industry is to get a referral, so I would focus your effort on networking, and see if you can add some follow-on investment deals on your track record in the meanwhile, so at least you can say you touched some later stage rounds and have seen the materials etc. 1.5 years of experience is great, but it's still early to really sell your experience, would recommend at least another year on the job so you can at least have a few meaningful deals and maybe an exit.
Also have a few questions here: for those already in VC, how pivotal is the brand of VC in terms of exit ops to 'better-brand VCs' or Growth Equity. Wondering how hard it is to move from a starter-VC with a few top investments (maybe 2-3/20 are unicorns) but not a well-known brand name? Does the portfolio mean more than the brand itself, or do brands just hire brands in VC?
Also I guess a no-name VC brand would struggle to move to a good GE firm; curious to hear thoughts here also
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Generally, moving up the funnel (i.e., from early-stage VC to Growth) is more difficult than moving down the funnel (i.e., from PE/IB to Growth). This, whether right or wrong, is largely based on technical abilities. At an early-stage shop, sector-specific knowledge, sourcing and building conviction on a management team are more important. Series B+, where there is some traction and prospects have demonstrated PMF, performance-related analysis is more prevalent and often more associated with more analytical backgrounds/experience - e.g., as with PE and IB. At the later stage, being able to build out a complex operating forecast/revenue build (sometimes driven by unit economics/cohort analysis) is more important, so if you can demonstrate/work on those skills then it'll make things easier. That being said, as a general rule: I'd assume that the further up the funnel you go (i.e., the later the stage of investing), the greater the requirement for a traditional, analytical background (PE/IB). Nothing is ever impossible - my suggestions would be to get as much exposure to follow-on rounds as possible.
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