How to break into VC
I am a sophomore at a top university (but that is a non-target for finance). I am majoring in math+econ, and have a solid GPA (3.62, will bring it up). I am doing an internship with BAML Global Wealth Management, and am looking into a consulting internship with MBB within the next year, hopefully. My question is, how can I break into VC? I have a solid understanding of how VC's work, having worked at an entrepreneurship center for over a year and having attended many venture forums. I'm guessing I should probably keep going to these forums and do some heavy networking with the MD's that attend, but how can I position myself as a good candidate for an internship or even an analyst position, given VC's seldom seem to hire "young" people? Should I offer to work for free for a summer?
try and found your own company first. vcs often have entrepreneurs
In my experience VC's want engineers or MD's (medical doctors)... people that can evaluate potential products. Surprising as it is, there are a lot of MD/MBAs out there that are taking over the med device VC world.
there are a tiny group of VCs that hire straight from undergrad, but these are purely for sourcing jobs (eg Insight in New York).
You have one of two routes: Like PJC said (his first real post ever), entrepreneurship is the primary path into VC, and the one that will give you a real shot at a partner track. You can't really add value in VC if you don't know a particular industry down cold and if you haven't built a product or business before. Consultants and IBs don't last more than two years in VC typically.
Path 2 Pre-MBA after your MBB, IB or product mgt stint at Google, you can work for a fund in a 'pre-MBA role.' As the title implies, this is a two-three year and out type position, with the expectation you do something else following your stint...
Sorry bud, but you do not have a solid understanding of how VCs work having worked at an entrepreneurship center for over year and having attended many venture forums. That's like saying you're looking to make the jump to the NBA after having been a JV high school player in South Dakota, and the fact that you've attended many NBA All-Star games in addition to being a sub-par high school player makes you qualified to go pro. I agree with what everyone has said so far, either start a company and do really well, then you can become an EIR at a VC firm; or go to IB where boutique/smaller VC shops and growth equity firms hire (i.e. Summit Partners, TA, etc.). It's very hard to get into VC straight out of undergrad, but some venture firms do this; usually though, these people went to targets, graduated with a 4.0, summered at a top group, top shop in IB, went to space with Lance Bass, AND have great connections. Don't offer to work for free; it's viewed as desperate.
What's up Peter Chung? haha...how's life been since Korea?
Still at Carlyle...but in the back office
This being my long term goal, I've done quite a bit of research. Like said above, really the fastest you can get to VC is through an associate role at a growth equity fund (TA, Summit). At most firms, associates or junior directors are typically late 20's early thirties. From what I've observed, +75% have had some IB m&a or tech coverage group experience. McKinsey here and there, but mostly BB IBD initially with a engineering or finance background. Then a leadership or development role at a large tech company such as Yahoo, Google, or any other company where they have realized outstanding accomplishments. About as many MBA's vs non MBA's. So a quick road map for a typical VC is as follows (for tech): Engineering or finance--> IBD tech or m&a--> Biz development or tech company leadership (VP of this or that)-->maybe VC.
Also keep in mind that VC is by far the smallest in size of the buyside world. I've heard it can be almost impossible to break in without having your name already on the radar.
For a GE career track, best to start at a TA, Summit or TCV...i think either 3 give you street cred. You need to have demonstrated deal sourcing (banging the phones) capability and profitable deal generation. This usually leads to MBA (H/S/W), and from there I've seen most either go back to GE (either at the first 3 or at different funds), try something new like HF or PE
It is tough to break in. You need to get into the door someway. A great way is to meet a partner, impress them and then work for free. Do due diligence. Source deals even if it isn't your job. Send promising entrepreneurs their way. When you do due diligence, be quick and thorough, and beat their expectations. Prove that you are smart and competent. If you know your shit, know how to network and get lucky, you may land yourself a position.
Additional things to do:
Read a ton: read hacker news, VCs blogs, Tech Crunch, books on business and technology
Write a ton: write on Quora, write a blog, leave comments, analyze new tech IPOs. Show what you are capable of.
Build a brand. Help startups, give advice, make connections, do cool initiatives, organize events, do startups.
You have to hustle. I have a non traditional background (no college degree, no banking experience, no successful startups) and have broken into the VC world. Yes, I did get lucky but I also worked hard and smart. I also love startups, like I spend a lot of my free time reading about them, consulting for them, going to events about them, etc. Yes you may be able to fake that, but you should really fucking love startups because that is what VC is about, helping cool startups succeed. Yes, you also have a fiduciary duty to your LPs but the way you succeed is investing in the best startups and then helping them succeed.
You will have close to no chance landing a job by applying for an open position, too much competition. You need to build a connection, prove yourself and slide through the back door. Good luck
This x 1,000,000
There is no conventional way. The fact of the matter is, if you have to ask, you won't get in. Everything @SVOasis said is correct. It could take years of networking or experience to get a shot. I do not believe you have to be an ex-entrepreneur to be a VC. Breaking into VC will be more of a strategic culmination of your time rather than a LinkedIn message.
Do what @SVOasis said, "Read a ton: read hacker news, VCs blogs, Tech Crunch, books on business and technology
Write a ton: write on Quora, write a blog, leave comments, analyze new tech IPOs. Show what you are capable of.
Build a brand. Help startups, give advice, make connections, do cool initiatives, organize events, do startups."
PM me if you want an extensive list of resources.
How to enter VC after undergrad? (Originally Posted: 04/02/2015)
I was wondering what tips or paths are most useful in entering a VC firm after a top 20 undergrad school? ie. major?, etc.
Penn State Communications
You don't.
Tried doing that my first year out of college, "lol go work at and sell off one of our PCs and we'll talk".
Plenty of people get into VC after undergrad, it's definitely possible, but not easy. Most of the people who get the full time gigs spent their junior summer interning at one of the top firms.
What's the best to do to break into VC after ones first job? IB then VC ?
Go work at or start a startup. It is invaluable experience in the eyes of VC firms. Theres so much more to VC, especially at a seed or series A level, than spreadsheets and financials.
You need to tailor your experiences to what VC firms want. So as ChEm3 said, go work at a startup, start your own business, be proactive on campus and take on leadership positions. VC guys want to see not only someone who can do the work, but someone with a lot of energy and drive. The key word to focus on is entrepreneurship - make your resume filled with as much entrepreneurial experience as possible
Where would be the best school to work at a startup or make one? Stern? USC? ND?
Stern is better than ND by a long shot for VCs and entrepreneurship.
But I just want to point out that starting a company for the sole purpose of joining a VC after graduation is a terrible idea - it will be a waste of time and resources, and VCs will be able to see through it.
Startups are an all-consuming way of life. Success often comes through pure diligence, pursuing 'unscalable' methods of expansion until you can reach critical mass. Startup founders work 24 hours a day. They dream about their companies in their sleep, sketch out concepts and wireframes in classes, think about marketing strategy on the train and practice their funding pitches in the shower.
Make a company because you want it to succeed. It should be for an idea that energizes you with a team that makes you a better person.
Also, if you want to join early-stage VC or be an effective member of a startup team, please learn to code. There are a billion resources you can use.
And finally VCs hire differently than PE and IBD. Recruiting is primarily done through connections and referrals - get to know your entrepreneurial community. Working at startups (made by other people) and getting part-time internships in VC will help you further.
VC is even more about networking than the other fields on this forum. Keep that in mind - meet as many people in as many places as possible. If you hustle enough, the right opportunity will come along.
To get into PE, do most come from IB work experience first? How is it possible to enter PE right after undergrad? -- I hear its extremely difficult but possible.
Definitely agree with a majority of what 7X said. Starting a business with the goal of moving to a VC without a successful exit is retarded.
What I would counter though is the need to learn to code. Personally, I was one of those kids who taught themselves how to code in high school, but I decided to stop in college. I've tried to go back into coding, but the landscape changes so fast that it is pointless to half-ass, learn how to code. You really need to thoroughly enjoy it and constantly be tuned into the ever changing tech landscape.
That's not to say you can't be successful in a start-up! Businesses need vast array of talented people to become valuable.
I would highly recommend cold calling shops and meeting people in the industry.
Hands down its entirely about connections. I've got an acquaintance who is the MD of a startup VC( firm to use him as an example), and they don't even have a structured recruiting process. He finds new employees through referral or by calling up people that he knows who might be interested in a gig.
Part of it seems to be due to the nature of the work. It's for the same reason that consulting internships are hard to come by: it's generally difficult to predict what the project requirements will be in June and July during November of the previous year.
How to get into Venture Capital (Originally Posted: 08/10/2006)
Well it's kind of self-explanatory....how would one go about getting a job as a venture capitalist?
I konw it's a hard industry to get into, but what I've heard is that they like consulting guys better than investment bankers...:)
really, they like neither as a VC partner once said to me, this is not a job that you find, it's a job that finds you. They look for people with the kind of industry experience that cannot be acquired if your plans were to get into VC in the first place
How difficult is it to break into VC? (Originally Posted: 01/11/2011)
Hello,
I went to a top 25 school with pretty decent grades. I have been working in financial services for two years and am hoping to break into venture capital. Will it be necessary to do investment banking first? How difficult is it to break in the current economy with a banking background? Any advice would be extremely helpful!
VC Newb
Look at the profiles of some of the Analyst/Associates at a firm like Bessemer Venture Partners and they either have an entrepreneurial background or a few years of IB/Consulting experience. I've seen a few Equity Research guys that covered Software/Tech etc break through but that's rare
So I guess the next questions is: what exactly do you do ? The answer to that would influence answers to your other questions
IB experience will help but youre going to need the entrepreneurial factor, attend the NY tech meetups, or go to Fred Wilson and Chris Dixion's talks at NYU and Columbia. Start a website with a buddy selling used Ferragamo loafers. VC isnt as simple as IB-->VC.
Also i'll note that most of the respected and successful VC's dont have an IB background, or have a short time in IB compared to other experiences. Being an entrepreneur gives you the leg up, operational experience is key to many of these firms as they focus on small niches of investments (SaaS, Web 2.0, biotech...) its hard to pick out a great company if you dont know the ins and outs.
Later stage VC is a different animal though, much more IB relevant.
How to break into the VC industry (Originally Posted: 12/24/2010)
I am just looking for a VC/M&A internship. I come from a non-target school with a 3.1 GPA 3.6 Major GPA. No prior internship experience. Very involved in school and an athlete. I have been looking through my school, which has only taken me so far. I have been emailing companies (Boutique) my resume and cover letter. I would like some advice at the least on how to approach a smaller company and any advice you would think is helpful for me. Thank you monkeys.
Im on the same boat buddy. I have a 3.8 from a non-target school and have not had any past internship experience. Im a junior so i really need a good internship for this summer... Let me know if you come across any helpful information
^^^ Me too. Can you forward my information with yours as well? Also, can you help me negotiate a $100 K internship along with 30% commission. K, thnx, bye.
There are lots of threads on this. Do a WSO search please. No offensive, but the odds are really against you guys. There is a great thread on how someone broke into VC from Undergrad. That's a good starting point. Be more proactive than posting a thread online before Spring semester your junior year is my advice.
connect with ppl on linkedin, push your family/friends' finance connections..also since you are targeting VC, you should see if you know anyone working at a VC funded company (biotech, pharma, tech, etc.) and network from there
im not against cold calling vc/growth stage firms since they cold call people all time
College -> VC? (Originally Posted: 12/03/2012)
Little about me: BB IBD SA (rotated in TMT & LevFin), applying for grad roles in M&A, but have only ever been interested in banking as a stepping stone to VC.
Does anyone know any firms that take on college grads? Don't mind if its "bitchwork" for first couple years (banking's not much better in that respect).
I believe Bessemer Venture Partners and Insight Venture Partners hire a few full-time analysts, with the latter even accepting summer interns.
Also very interested. Anyone know any more places like Insight Venture that have summer interns?
Lots of smaller VC's offer internships. Can't name specific firms but they are definitely out there if you look hard enough.
Undergrad econ -> VC (Originally Posted: 02/26/2012)
So I understand that this is rare, but how rare? Specifically for econ major from NU and Chicago VC's. Also, what's compensations like, 80-120k? And if you put in your 2 years in IBanking, then go to a VC, are you an associate or an analyst?
Undergrad to VC is considerably more rare than to any other field because of a couple of things - there are far fewer firms that are willing to take an unskilled person, and when they do, the analyst would typically just cold call companies all day asking if they want investment (which means there would be not so much in the learning dept. to apply to anything in the future), it would make you so that your options would be more limited compared to IB or w/e else you've considered, and there is speculation over whether the VC model is sustainable over the long run. We are currently in a tech bubble, and when it bursts the VC scene will contract even further. If you want to potentially be in VC for the long run, or be on the board of a company your company invests in as a startup as a board member or something then thats an option.
For tl;dr: specializes and limits you, you don't gain the skills you would in other places etc. etc. I've heard variation on the comp but generally around 70-80k plus ~25k per deal sourced (which you may not do in a 2 year stint). If you come in after banking, youll be an associate.
Don't worry about any of this for now. First, look at VC job descriptions on Glocap; you will need a science degree in 99% of cases (either life sciences: bio/chem/biochem/bioeng/chemeng/etc. or tech: electrical eng./computer science, etc).
Switch majors or get a recognized concentration in your field of interest (minor in CS for example if you like tech VC). Be realistic, what did you learn in Econ that is applicable to real life? Now imagine sitting side-by-side with an electrical engineer that can actually build a computer from sand and write and operating system if he's asked to. Put these guys through 2-years of IB and they become lethal (technical + financial skills). If they have a genuine business instinct and a passion for their sector, then they MAY stand a chance.
Don't mean to discourage you, but it is the toughest industry to get into. And you need to have at least what I mentioned above. You can still do it, act fast.
PS: The reason I took this negative tone is that when I was in college, I got the same spiel from someone in VC and it pushed me to succeed. Now I'm in VC.
How does the process usually work moving from 2-3 years of IB to VC? Do any VC firms actively recruit from big banks, or is this something where you have to search 100% on your own? Basically, how do you make the jump from bulge bracket analyst to VC associate?
Is it possible to break into VC without an MBA? (Originally Posted: 11/15/2012)
Do any VC firms hire pre-MBAs with no prior VC experience?
Yes... if your from Stanford.
Super duper hard. Actually, damn near impossible.
Some misinformation here. A lot of VC firms hire pre-MBAs with no VC experience. One of my buddies worked as a consultant before going to a VC firm. The top notch ones will hire serial entrepreneurs and you'll actually see a lot of entrepreneurial experience from most VC guys. Several bankers go into VC as well pre-MBA. I work near a firm (Battery Ventures) which hires a lot of them.
However in my experience, VCs use less headhunters and usually hire through a network. It's best to reach out and express interest.
There are some firms that do recruit at pre-MBA level, but they won't be easy to break into. You'll need a combination of luck/experience/networking.
I have heard of consultants/bankers moving into VC pre-MBA, but what about if you are coming from undergrad... is that possible?
Yes
thebigbambino, can you elaborate?
Just like private equity, there are plenty of funds that take pre-mba analyst/associates, literally tons. Most of my team did a solid undergrad, 3 years of IB or consulting then were hired as analysts. There is no required departure time for my fund but I know a lot of PE shops that do 2-year associate programs and then expect you to go do your MBA. Heck even funds like General Catalyst take pre-MBA people.
Now, how to get to these pre-mba VC spots is a different story entirely.
I've met a couple analysts who were pre-mba over the years. Many of whom worked for smaller funds. Most of them were somehow directly related to the fund managers, sons/daughters/relatives/family friends etc. They didn't do much besides try to source deals. Most I met while at angel/venture capital clubs/conferences.
If you're targeting firms, stay away from early-stage/seed capital vc funds. Analysts are pretty useless there.
Yep. Did 3 years of investment banking covering healthcare before getting hired by a VC fund.
is the only way to get into VC pre-MBA through consulting or investment banking? or is it possible to get in straight from undergrad with no prior VC experience?
Yeah it's possible, I did it, although I didn't get in through undergrad, got in a year later (a year of unrelated experience non-consulting/IBD though). Won't be easy though and you'll need some good luck/networking/skills/grades/etc.
Did three years of tmt banking, started and sold a company and then got into vc, no MBA
Best stepping stone to Venture Capital (Originally Posted: 11/04/2014)
I'm targeting my sights on getting into venture capital. I want to seek out technology start-ups, evaluate their potential, and execute large investments. So does everybody else, right?
I have three years of experience at a top tier actuarial consulting firm. I've just about got my ASA, if you're familiar with actuarial designations. I've gotten a lot of experience in modeling and have a good mind for finance.
I want to find an intermediate job that will help to put me in a good position to break in. I also want to continue studying and getting designations, if they'll help. I've been mulling around some ideas, and would appreciate your input. Some things I've been considering:
I realize this is very general, but any input would be greatly appreciated.
Depends on the firms. Many earlier stage firms will want Product Management or Operational experience.
Many tech banking groups are feeders into later stage funds.
Check out the background of the associates and partners at these funds. Midas list is a good start: http://www.forbes.com/profile/todd-chaffee/
I'd take a look at this thread in detail. http://www.wallstreetoasis.com/forums/current-vc-associate-taking-quest…
A lot of threads on this already, Dingdong's link should be enough for your to cover through.
Long Journey Adhead: Non Target to VC Best Route ? (Originally Posted: 12/09/2013)
So after having little career direction while an undergrad, yet doing solid academically (3.8 double major finance and econ) at a non target Florida state school I've recently come to the realization that I want to get into VC/PE. I've had some internships but nothing strongly related. Was looking for some advice on which direction to go and steps to take to position myself best for a solid career in VC . Right now I'm considering an MSF program at a much more reputable school but keep second guessing myself. Anybody got any advice ?
Sincerely,
A hungry chimp
Shoot me a pm
There are a lot of articles about getting into VC on this website. But generally there are 2 ways to become a partner or director (where the real money is made).
What's a top VC looking for? (Originally Posted: 12/01/2006)
Assuming 2 years experience as an analyst, what are top VCs (Kleiner Perkins, Accel, NEA) looking for? Lots of modeling experience? Industry knowledge? How many analysts go to VC each year - vs. PE or HF?
Very interested in this as well..
Top VC firms assume you can learn the technical financial skills on the job, what they really want is an individual who understands the marketspace, has an exceptional network and typically sometype of mixed operating/financial/consulting experience. Last but not least is the ability to sell and form relationships. Many of the market leaders (companies) will have multiple firms chasing after them, why should they choose yours?
from my paltry network, i've heard consulting and operating experience stressed heavily -- modeling experience is indicative of some business knowledge and quantitative ability, but is just about useless in helping a start up grow.
What are the personal characteristics that they are looking for?
You should have analytical skills (what business job doesn't?), persuasive skills, and the willingness to take risks. You shouldn't act impulsively.
Entrepreneurial endeavors also help. You probably didn't have much time on the side as an analyst, but if you can draw on college experiences with start-ups/small business, that's a plus.
Usually being part of a successful start up with a half decent MBA will put you ahead of the bankers and consultants.
Do some finance in your lovely bank then get working in the real grit. VC will love you then.
Here is what I look for...
Intelligence and intellectual curiosity.
Direct experience in a start up (perferably a successful one) and expert level understanding of either technology or marketing (not making logos and brochures, but how to build a business that makes money; e.g. BD, distribution, web, etc.) Both would be golden.
Good academic background (need to see the ability to learn, and stick at something). Modeling is o.k., but reading financial info is more important than being a spreadsheet jockey. Too much jitter in new ventures to be meaningful. DCF..? Yeah, right.
Enthusiasm. VC world is about hope. Need to be passionate about this stuff.
Ability to add value to portfolio companies. Can be all kinds of things...people networks, technology, operations, sales.
Good luck.
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