Moving from Product Management to PE/VC
I have a top 10 FT MBA and MS CS degrees - currently work as a Product Manager in tech (Total Compensation: $260K per year) and also have 5 years of experience as a software engineer. How can I set myself up to move into investing roles in PE/VC in the long term? Any part time degree programs that will help? Appreciate the advice!
Bump. Appreciate any advice from the smart folks here.
Well, I’d get straight on whether you’re interested in PE or VC first. Those are two pretty different things, both with additional flavors underneath the surface.
I assume with your background that (most likely) you’re going to come down on the VC side, and I again don’t have particularly helpful news for you. Breaking into VC several years post-MBA is hellishly difficult. I know how ridiculous this will sound, but the surest way to crack in would be to be an early employee (and senior) at a startup that does well for the investors. Doesn’t necessarily have to be a home-run but everyone’s got to be happy about it. Then, you can have caught folks’ eye or have networked well, and you might get an offer to come be an EIR or Venture Partner. From there, it’s just a matter of being successful in the role and you have a shot at rolling into the GP group. Or, if you have a great exit and a lot of cash, you could buy your way into a fund as a GP. In both those cases you’ve proved yourself and you’re contributing value (sometimes literally).
The problem you’re really facing is that you’re expensive, you don’t have demonstrated skills, and you’re trying to get into a pyramid. Now, it can certainly be done, but you’re going to have to come up with a way where you add genuinely unique value and you can clearly and publicly demonstrate that.
I’ll also say that I imagine the VC industry is about to go through a nasty and sharp contraction...
Good luck - I know the above is probably not fun to hear, but it CAN be done. Just don’t put all your eggs in this particular basket.
Thank you so much. This is very helpful and confirms my general understanding. I am particularly interested in late stage tech vc/growth equity. I am thinking of building skills/experience that can potentially help me transition 5 years down the line. Do any of these seem worth the time/effort? 1) Work on informal projects with the Corporate Venture Capital team at my current employer 2) Complete 3 levels of CFA 3) Pursue a part time masters degree focused on finance (example: Stanford MSE with a finance focus) Also, how does the compensation for late stage tech vc/growth equity compare with a Faang product manager?
Why would you bother doing another degree when you already have a top MBA? At that point you're just collecting degrees that effectively have 0 marginal utility. CFA is also overkill for VC.
I was hoping for the following (very) marginal benefits:
1) Signalling - A CFA as well as a top finance masters would signal interest and aptitude in finance 2) Network - A top finance masters program will help further strengthen my network 3) Knowledge - Learn more by doing courses I did not take during my MBA
I completely agree that the benefits are marginal but was giving it thought as I don't see significant downsides in terms of opportunity costs.
Yeah I agree with princepieman - no more degrees and the CFA is not at all worthwhile. Working with your internal CVC team is your best shot. I’d try that as long as you keep in mind your goal is very, very difficult to achieve and contingent FAR more on luck than skill.
Veritatis eos fuga assumenda minus qui. Repellat in aperiam aut quasi explicabo.
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