Q&A: Answering questions about working in VC
Merry Christmas, WSO! I figured I’d start a forum about venture capital, since there’s less good (and recent) information about it on this site. Happy to answer questions from prospects or current professionals trying to break in. Other VC investors should feel free to chime in too!
Mod Note: WSO's VC course is now live - check it out here.
Really appreciate the AMA! I have a couple questions:
Thanks!
Small fund and no name are two very different things. Benchmark is a small fund, but it's arguably the best fund in the world. You probably know that, but just flagging for those who aren't as familiar with the industry.
I think most funds, however, are not worth joining -- just like any venture portfolio is driven by a few outliers, the industry is as well. Unless you have the opportunity to join a fund -- big or small -- with excellent deal flow where you'll build a great network, it's probably best to do something else (maybe banking or consulting, or better yet, a startup) out of school
Banking experience is certianly valuable. You develop hard skills and develop a sense for strategic issues. It's a great place to start a career if you're not 100% set on doing other things.
Having said that, I think people on this forum tend to underestimate operating roles, especially if they want to do something outside of PE / HF. I'd take a cool role at an awesome startup, especially if the IB offer is bleh. It's harder if you have the opportunity to go to a top bank, but I think people should think a bit more oustside the box
The Bay Area will remain the most talent and capital-dense tech / VC hub in the short to medium term, just because it's the center of gravity today and there's a lot of stickiness -- people with families can't just pick up and leave. Having said that, things are absolutely distributing, and Texas / South Florida / NYC / LA / Denver / etc will certainly benefit as folks look to move to places with a higher quality of life. California's government is horrible, and local leaders in SF are even worse. Most big cities are run by liberals, but the liberals in California are self-destructive in a way others aren't. The tax and cost of living issues will drive people out, but the general quality of life things are really what's behind the exodus -- it's just not nice to live here for many people. People say "well, it's just a few who are leaving." But these few are the ones who support the budget. Unless things change in a big way, the Bay Area will no longer be the massive center of gravity it once was