Ask HN: How do you get a job at a VC firm?
13 comments
It appears based on the background of the VCs currently, you need to build a product/business, grow it, sell or do an IPO (returning a tidy profit to the VCs that funded you), and then join a firm after 'retiring.'
There are plenty of people behind the figureheads who just have an MBA and somehow got a job there.
I've seen there are two (highly generalizing) tracks:
1. Professional Finance/Banker types. Usually MBA track with some Goldman-Sachs-type experience.
2. Founders and entrepreneurs aka "Operators" who move into VC from an exit.
(Again with the generalizing) The former (MBA) tend to work later stage, whereas the latter (Founders) usually work early stage.
Late stage has more financial metrics and needs stronger traditional finance networks. This suits a professional finance type better.
Early stage requires a grass-roots network and some technical/operational chops can be a big advantage. Founders can also differentiate here as they can roll their sleeves up and help hands-on in more areas.
A less common way is to build up to VC as an Angel investor or some type of advisor. After getting a bit of a portfolio you can start raising a fund (or more likely, help someone else raise one and jump on). However, they tend to be founders with some level of liquidity. But if you're in for a long haul that seems to work too.
1. Professional Finance/Banker types. Usually MBA track with some Goldman-Sachs-type experience.
2. Founders and entrepreneurs aka "Operators" who move into VC from an exit.
(Again with the generalizing) The former (MBA) tend to work later stage, whereas the latter (Founders) usually work early stage.
Late stage has more financial metrics and needs stronger traditional finance networks. This suits a professional finance type better.
Early stage requires a grass-roots network and some technical/operational chops can be a big advantage. Founders can also differentiate here as they can roll their sleeves up and help hands-on in more areas.
A less common way is to build up to VC as an Angel investor or some type of advisor. After getting a bit of a portfolio you can start raising a fund (or more likely, help someone else raise one and jump on). However, they tend to be founders with some level of liquidity. But if you're in for a long haul that seems to work too.
Yes, one way to get a job at a VC firm is to either be a successful entrepreneur, or have domain expertise that the firm needs. These include: (1) technical expertise - do you know a relevant technology inside and out (e.g. for biotech - do you have a PhD or MD)? can you vet potential investments? (2) finance - have you worked in investment banking before? helped raise money? structured deals? (3) do you have an outstanding network that you can source deals from? can you make sure the firm knows all the up and coming start-ups?
VC jobs are tough to get, even at the associate level (entry level). Typically firms are looking for some domain expertise they need. It can vary a lot. Background that include finance or consulting can be helpful, but aren't guaranteed to get you in the door.
At the higher (leadership) end of the VC job spectrum, it often comes down to "can you raise money?". Do you already have a track record of success?
VC jobs are tough to get, even at the associate level (entry level). Typically firms are looking for some domain expertise they need. It can vary a lot. Background that include finance or consulting can be helpful, but aren't guaranteed to get you in the door.
At the higher (leadership) end of the VC job spectrum, it often comes down to "can you raise money?". Do you already have a track record of success?
The comments here make it seem like being an employee at a VC is super elite, and either requires a deep rolodex or deep pockets. While, I've thought about breaking from technology and business into the VC game, it seems like being a trader in NY would be more prestigious and probably way more lucrative in terms of compensation. Maybe I've just watch The Wolf Of Wall Street too many times.
> ...it seems like being a trader in NY would be more prestigious and probably way more lucrative in terms of compensation.
Basically this is the case. In the case of compensation you get a piece of a much larger n (how many deals does a single VC do (and how much of the proceeds does an associate get -- none or almost none)). And in terms of private equity the VC industry as a whole is a barely visible bump -- there are many private equity firms each larger than the entire VC industry.
Basically this is the case. In the case of compensation you get a piece of a much larger n (how many deals does a single VC do (and how much of the proceeds does an associate get -- none or almost none)). And in terms of private equity the VC industry as a whole is a barely visible bump -- there are many private equity firms each larger than the entire VC industry.
> Maybe I've just watch The Wolf Of Wall Street too many times.
Why do so many HN commenters think that movie is, like, a credible documentary?
(I don't necessarily mean you, obviously.)
Why do so many HN commenters think that movie is, like, a credible documentary?
(I don't necessarily mean you, obviously.)
I understand it is not a documentary. :-) lol. I just love that movie.
Getting a first job as a VC analyst is pretty achievable.
It is pretty much a 3 years and out kinda job so any VC firm that has an analyst who's been there 2+ years will be hiring soon.
Typical background: Major in business/finance, or CS/engineering; whichever side you don't do, get some exposure to the other side - teach yourself to code or take an accounting basics class.
Get involved in the local startup ecosystem - volunteer at a demo day or a local tedx event, intern at a startup, something like that. Get to know a lot of people in this world. Maybe write a couple blog posts with insights about some upcoming markets.
Generally, you want to show that you get both tech and business pretty well, and also seem like someone who's eager to work hard to prove themselves and that lots of people seem to know.
Typical background: Major in business/finance, or CS/engineering; whichever side you don't do, get some exposure to the other side - teach yourself to code or take an accounting basics class.
Get involved in the local startup ecosystem - volunteer at a demo day or a local tedx event, intern at a startup, something like that. Get to know a lot of people in this world. Maybe write a couple blog posts with insights about some upcoming markets.
Generally, you want to show that you get both tech and business pretty well, and also seem like someone who's eager to work hard to prove themselves and that lots of people seem to know.
If it's the same naming as banks, analyst is the lowest level position in the chain. Something similar to an intern at a GAFA. Not a dream position at all.
Why do you want to work for a VC firm? I would suggest investment bank might be better paying job with more potential.
You know someone "important" there.
Or.
You already are "important".
Or.
You already are "important".
Be well networked. With the understanding that your network isn't the list of people you know, but rather the list of people you've made at least $10M for.