Should I go into VC now?
Hello board,
I have a problem here: Should I go into VC now (as VC analyst)?
Background:
I've just graduated from uni in comp science and currently employed with my degree sponsor - an Asset Management company in Asia. The company has a small VC arm ( $100-200m fund) and I was fortunate enough to have a short stint with the division for a few weeks (part of the company's rotation programme for new hires).
Why is it a problem?
To quote Guy Kawasaki, "Why would you want advice from someone whose background consists of working in a college bookstore or cranking spreadsheets at an investment bank?" - I don't have any substantial working experience (worked in BB's tech department for internship - didn't like it much) and as a result, I don't think I am able to bring in value much to investees' companies with my ed+exp so far. I mean I'm just a fresh grad after all!
Potential solutions?
I am currently torn apart with the company's other departments: corporate finance, equity research (3-4 years before going to fund management) and CEO's office (strategies, M&A and takeovers, very project-based, ad-hoc work).
My goals?
I want to start up my own company in the future, and I believe experiences in the VC arm and CEO's office can help me a lot in terms of preparing me towards that.
So, any input?
Many thanks!
Finish the current program. You're young and gaining a lot of hands-on experience in different departments. You'll learn how a business operates. I'm surprised you went into Finance rather than Consultancy.
I work for a VC active in alternative energy. I can testify that the deal flow is exceptionally dismal at this time. Perhaps it's because we're primarily focused on solar projects and the returns for this industry are atrocious... debt or equity.
What industry does the firm invest in?
I recommend that you choose the department that is the most active. Learn as much as possible about all the departments in the meantime. If your goal is to become an entrepreneur then network with everyone. I don't think you're going to be at a disadvantage if you don't pursue VC... all about who you know and access to the CEO is more beneficial than access to the director of the VC group.
@Walkio Yeah, I am surprised myself. I was told CEO's office is like a small consultancy team. They work with everyone across different departments formulating strategies and stuff. The problem here is that people become a generalist rather than a specialist because you have to do all sorts of different work and of couse, late nights comparable to those in IBD. The upside is, I get to meet a lot of people in the company and climb up the ladder pretty fast (as lots of people will know you).
The programme is about to end, so I need to put in my preference soon.
@mb666: The VC group is focusing on biotech companies, tech and renewable energy, but ultimately open to any industry since it operates in an emerging market. They are quite active reviewing deals but I find their lack of focus might be a weakness. The whole group is quite small - 8-9 people. The group doesn't have any industry experts and the way they add value is by trying to pair up companies with the asset management company's (VC is the subsidiary) holding companies. Is this normal in VC industry?
Another thing why VC, is because I get to study how entrepreneurs work - I get to meet the startups management and learn how do they do things. Not sure if I can do this in other depts.
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