VC -> Consulting
Does anyone ever make the jump from VC to consulting? Have not heard of this path as it seems people are usually looking to go consulting to VC. Would love to hear if anyone knows any stories of this happening or what the path might entail.
Switching from Venture Capital (VC) to consulting is less common but not unheard of. The typical career trajectory often sees professionals moving from consulting to VC, given the allure of the investment world and the opportunities it presents for engaging with startups and innovative technologies. However, the reverse path, from VC to consulting, does happen for several reasons:
Skill Set Utilization: Professionals in VC develop a keen eye for market trends, due diligence, and investment strategies. These skills are highly valuable in consulting, especially in strategy and financial advisory roles where understanding market dynamics and evaluating business potentials are crucial.
Broader Impact: Some individuals may seek a broader impact beyond the investment sphere. Consulting offers the chance to work on a variety of projects across different industries, enabling professionals to apply their skills to solve diverse business challenges.
Personal Preference or Lifestyle Choices: The VC world can be highly demanding with a significant focus on long-term gains. Some professionals might prefer the project-based nature of consulting, which can offer more variety and potentially a different work-life balance.
Professional Growth and Learning: Consulting firms, especially top-tier ones like MBB (McKinsey, Bain, BCG), offer extensive training programs and a structured path for professional development. Individuals from a VC background might be attracted to these opportunities to broaden their business acumen and leadership skills.
Networking and Exposure: Consulting projects can provide exposure to senior executives and decision-makers across various industries. This network can be invaluable for professionals, offering insights and opportunities that are different from those in the VC ecosystem.
While the path from VC to consulting is less trodden, it's feasible and can be driven by a desire for a change in work style, the pursuit of new challenges, or the opportunity to leverage VC experience in a consulting context. Transitioning would likely involve highlighting how one's experience in VC adds value to consulting projects, especially those requiring deep industry insights, financial analysis, and strategic planning.
Sources: Three Valuable Investing Tips: Why I am Transitioning from a VC to a Start Up, How to land a job in Venture Capital in Europe (London)?, IB to Consulting?, Q&A: 1st year VC analyst (~750M AUM), Private Equity vs Consulting?
Made it to final rounds with one of the MBBs (the only one hiring in my geo - hiring is bad bad for the 3 MBB's right now) on a weeks notice for post-MBA role after my VC associate stint - definitely was looked as a positive. Also knew another guy from my fund who did the same when he was leaving (also felt unprepared for the final round case). Didn't quite nail the case in final round (probably not enough time prepping given short turnaround) but background was very well received. Would also add that I had a solid referral. Ended up going to an early-growth startup in a chief of staff role instead and am very happy doing that - but should definitely be possible. Also the founder of the casing service that I used (Enguerran Loos) did this as well IIRC.
I think it makes sense if you're hoping to get out of startups, or maybe create flex for yourself in terms of geo or prestige relative to your current fund, though bear in mind you'll probably have to make peace with investing roles being difficult to obtain (not that they're easy to get in this market) after your stint.
If, in a couple of years, I decide the startup life isn't for me - ie, I don't want to be a founder, which is what I'm doing my current gig for - then I may choose to go and do the MBB circuit again.
Don't have a ton to add, but happy to answer any questions.
How'd you reach out? Apply directly or DM a partner in your coverage area? For generalist role or slotted to a team based on your coverage?
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