VC to Growth?
Hi all,
Long story short I am an Associate in tech M&A in London (A2A). I am looking for a new job and would ideally go for growth (the likes of GA, Insight, TCV, One Peak, but also the early growth funds).
However I’m receiving some interest from VC (Seed/Series A) and wondering if it would be possible to switch to growth after early stage VC? (So say after 4 yrs in IB + 2 in VC). I think after VC I would have a great network of investable companies & great networking skills but am a bit worried about the DD & technical side which I imagine is quite light in early stage vs. Series B-C-D-E in growth.
Any views on how feasible that is? I feel like it’s easy to do PE -> growth but wondering if possible to move upstream too. The VCs that are calling me are probably at the second tier in London (ie does NOT belong to Atomico Accel Sequoia or Balderton, but still relatively well known).
Separately, could anyone shed some light on what kind of DD you do in early stage VC & what technical skills you build if any? I am only familiar with growth and would assume that you don’t have enough data to build a fully detailed operating model in most cases like you would in growth equity.
Lastly, any positive points for VC vs. Growth? Growth seems more complete & higher pay but would imagine that VC has better WLB, could be more fun, and better culture ? Also would be pretty cool to hit a home run and do 50x on an investment.
Many thanks!
Based on previous WSO threads and the highest-ranked content on WSO, here are some insights regarding your questions:
Transitioning from Early Stage VC to Growth Equity
Feasibility of Moving from Early Stage VC to Growth Equity:
Due Diligence in Early Stage VC:
Positive Points for VC vs. Growth Equity:
Additional Considerations
Conclusion
While transitioning from early-stage VC to growth equity is feasible, it requires careful consideration of the skills and experience you will gain in VC. Building a strong network and understanding the market are valuable, but you may need to supplement your technical skills to make a successful move to growth equity.
For more detailed advice, consider networking with professionals who have made similar transitions and seeking mentorship from those in the growth equity space.
Sources: https://www.wallstreetoasis.com/forum/venture-capital/early-stage-vc-101-5-questions-you-better-be-able-to-answer?customgpt=1, https://www.wallstreetoasis.com/forums/qa-consulting-pe-early-stage-startup-b-school?customgpt=1, Clarity on the Growth Equity Landscape, Q&A: Principal at Early-Stage VC Fund, https://www.wallstreetoasis.com/forum/venture-capital/career-in-vc?customgpt=1
The short answer is - don't bother.
I'm sure someone else will have more time to write a long answer with excuses and pathways potentially upstream, and wiggling around in funds that do early growth etc etc. But objectively, no. You shouldn't go into VC aiming to do later stage.
Good luck.
ditto
Hi - getting to growth from anywhere is an uphill right now. PE can get you to growth buyout / crossover type of places (TA, Warburg, GA) if you move within few years from a tech group - tougher to move to late-stage VC like Insight or One Peak. Pre-seed / seed will make you a seed guy forever so avoid that. From A/B funds you can go to non-buyout later-stage vc funds - the dd is not significantly different.
How about Series A funds that also do some seed (say £3-10m check sizes), will you also be seen as a Seed guy or does that allow you to move upstream?
Think could be tough. Maybe not a seed guy but an early-stage guy. Maybe you can find some 5-10m revenue early-growth stuff to do after idk. But early-stage is fun and v. competitive to get in too so think about it
Many thanks! Do you mind if I DM you so some career advice in EU? Much appreciated!
yea sure
Money is the easiest thing to make and the hardest thing to make. It mainly depends on how you make it. When you have money, your thoughts will be different. People cannot live in the present, they must constantly break through themselves.
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