Venture Capital Career Path (Masters Degree or MBA?)

franco

Neanderthal

Is MBA a requirement to enter into a traditional VC role? From what I understand investing experience (which you have now) and entrepreneurial experience are valued more highly.

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throaway92

King Kong

Quick answer: you should not do the MS. The only specialized masters that are worth it in VC generally are MS/PhD's from top schools in engineering.

1) The MHA program will likely lock you into healthcare VC, where there are a fewer "N" of institutional VCs to choose among, and many of the best (Norwest, NEA, GC, etc) are very prestige oriented and hire from top MD/PhD programs or H/S MBAs. But, maybe that is something you're okay with

2) VCs outside of a top fund or "potentially top emerging fund" composed of promising newer managers (Felicis, Craft, Unusual VC, Wing, etc.) with great pedigree are only accessible via networking/brand building, a great operational career, or a H/S/W MBA (frankly usually just Stanford, then maybe Harvard and Wharton). Other VC paths are rarely worth it in comp, career risk, optionality, etc.

3) The masters program you have in mind cannot be used in place of an MBA, unfortunately.

4) Advice I got I wish I knew: if you work in VC, even as an analyst, you are invited to rooms/conversations/networks that make it easy to find the best possible Series B-D+ company to join as an operator/manager - if you're thinking about where to park yourself for 2-3 years before an MBA, talk to other VC associates. So many folks know what the best-in-class companies that are growing like weeds are...because it is their job to, even if they can't invest in these companies directly due to access, etc. I know many ex-VC associates and VPs who used this and now find themselves in operational roles at incredible companies that are IPO-track or unicorns. Experience at a recognizable top growth-stage company is as valuable as a top MBA nowadays.

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Anonymous

Thanks, you clearly know what you are talking about. I appreciate the advice.

APAE

The Pro

Most Helpful

I echo throaway92 's comment.

You don't want a specialized degree. If for some reason you did get one, it's most valuable if it's in a technical discipline. Ideally, PhD, less ideal Master's of Science - and a specific subject. A Master's of Arts is a fluff degree that may help you move up a corporate ladder, but it will do largely nothing to make you a better investor, which is why it isn't well-respected by people in serious investing roles.

You already work in venture. Why do you need an MBA? You have a way easier time getting another role in venture than someone trying to break in from scratch. Spend one-quarter of the energy you would've on the part-time graduate program and make a market map of every fund doing the type of deals you find most interesting. Narrow it to 6-10 firms. Roll up your sleeves and:

consume everything available about each of their portfolio companies: read every post on their company blog, watch every interview or listen to every podcast featuring the founders or senior employees, scroll through the Twitter of each founder, read the funds' announcements of the investments (usually have great insights about how the partners think about the deal)
reach out and set up meetings with someone one 'rung' higher than you at those firms; you're an analyst and most venture firms use associates as their most junior staff, so you're looking for Principal or Vice President-level people; in those meetings, ask about their sectors of interest, diligence patterns, favorite ways to provide portfolio support; leverage every single thing you absorbed in the prior step to demonstrate a strong knowledge base so they're impressed
stay in good contact with those people for a year; send relevant things you find on Twitter, Medium, Substack, or wherever; if you see their portfolio companies are hiring, try to put together a list of good candidates for the job (who you know are good, are aware of their willingness to take a new job, and won't embarrass you if they do get an interview or a job based on your recommendation); share things you've learned from experience (e.g. how telehealth startups are developing new metrics for c-sat)
ask if there is any opportunity to work together

Everything I just wrote is the other half of the job in venture besides sourcing and supporting portfolio companies. If you perform it well, there should never be a time where you don't have 3-6 peer firms or venture-backed companies that wouldn't welcome you with open arms the moment you said "Hey, I'm thinking about my next step and realized I wanted to talk with you."

You don't need an MBA. If you do pursue one, focus on Stanford or Harvard. I want to reiterate that you don't need one. Practicing what I wrote here means you should meet dozens of people who have attended those schools, where if you're good at having these conversations and delivering value, you'll have access to their network to an extent very similar to that if you'd actually gone. You'll be one call, email, or text away from just about anyone you want to meet.

I am permanently behind on PMs, it's not personal.

ajf140

Baboon

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