After 5 years in equity research, I am considering pivoting away into VC. I am currently doing Tech research, love investing and personally enjoy the technology space a lot so think its a good match personally.
I wanted to see if other people who might have made the same transition or know both industries can weigh in on the pros and cons? Also, given how little response I have gotten from LinkedIn resume drops for VC jobs, I am also getting a bit worried if I am being too optimistic about the desirability of equity research associates into VC. Would love to hear other people chime in
Most VC firms will have the following thoughts when they look at your resume:
Can this person source startups? Is the tech ER skillset transferable? What value-add can this person provide the startups that we back? Why tech ER vs. someone who founded their own startup/a lateral hire from another VC/an I-banker or consultant?
Have you looked into ARK Investment Management? They're strongly tied into the VC/startup ecosystem, and I personally think that they're one of the few funds worldwide that really understands the impact of cutting edge / disruptive tech. Could be a way to build your network and eventually get into VC.
Really surprised to see that EQR is thought of differently vs banking. I always thought in terms of knowledge of the space, and talking to management etc EQR did more insightful stuff vs banking (where they may just be making powerpoints). I could be wrong (need to rethink my strategy here).
I will look into ARK investment management, but at the same time I would much rather go directly into VC in my next role.
Deal execution in VC is not as difficult as in PE, but some transaction experience tends to be key for most analyst-level roles. You make good points about why your skillset/background is transferable - it'll be hard, but definitely not impossible to make the jump.
Apart from applying through Linkedin, how much effort have you put into networking with VCs/startups? Recruiting for VC is a relationship game, and definitely very informal. Starting your own blog where you break down industries/incumbents/opportunities etc. is also a great way to show off your interest and expertise.
I did FIG EQR to VC so I can vouch that the move is possible. In some ways, you do have an upper hand vs my scenario because you cover tech already. Breaking into VC for me was basically a separate part-time job on top of EQR because there is no overlap in work & recruiting given my sector coverage.
To get in VC, you basically have to play the part of a VC Associate from the get-go: befriend VC's, find deals/relevant information, and share it with them. You're trying to keep your ear to the ground and find that VC opportunity that hasn't surfaced to a public job board. If you're relying on online job app portals, you have no chance because it's a black hole and decision making processes in VC are FAR more relationship-driven than other finance verticals.
Depending on the VC, the recruiting process can be grueling with some people I know taking as long as 2 active years on the search before landing something. My search took about 6 months due to the sheer intensity I put myself on and needed a month off to recover. Given a lot of funds have no dedicated HR, you can find yourself doing "interviews" for a fund over a course of a month and then have them go dark on you, so be aware that ghosts exist even beyond Tinder :)
SB'ed! Haha "ghosts exist even beyond Tinder" lolz
Bill Gurley, Mary Meeker, etc.......... Yeah you can do it, especially if you're at a good shop now. BB/EB. Since you prob can't go to networking events, start writing down interesting companies you like that are early stage and begin emailing folks in the industry. Try to meet with 2 people/ week and you will be on your way to break in within a year
Very interesting responses. I am trying to chart a similar path. How would you guys rank the below in terms of priority action items for trying to break into VC from EQR?
1) Network...Network...Network 2) Come up with Slide Deck with Idea / Investment Theme that will interest people 3) Go do banking first for 1-2 years, then try VC 4) Anything else?
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