If you are looking to get into VC, this article is a must read. Check this out to learn the inside track on how to get recruited for VC and how to ace any interviews that may come your way in the industry.
Venture Capital Recruiting
The process of recruiting can be long/tedious if the VC firm is not in a hurry to hire. Otherwise, it can be as quick as a couple of meetings. Most interviewees tend to meet the entire team rather than just interview with one individual. Here are several ways to break into the Venture Capital Industry
After College
Individuals who have graduated from a university and have experience with working with investments and/or startups for a couple of years are recruitment targets for the industry.
Post-MBA
Individuals who have lots of experience in technology, finance, or anything business and also landed a spot at a top business school are highly sought after by VC firms.
Direct to Senior Leadership
Individuals who have successfully founded and exited a startup or held high leadership roles at big companies with VC related tasks sometimes transfer to partner positions at VC companies.
Resources for Recruiting in VC
In order to break into the VC industry, you need to do you research and demonstrate a clear interest in the field. Here are some great ways to go about that:
“Work with accelerators/incubators to find opportunities with VCs through the investors that work with the startups. It helps the VC firm know that you understand what a startup is, the processes that it would go through, and how different the social culture is." - VC Partner, Harvard Class of 2018
There are not large textbooks that one should study for, but there is a lot of authorship from other VCs and thought leaderships from well-known investors that are helpful to follow. In these, they will write about the thought process when viewing companies such as “These are XYZ metrics that we looked at when evaluating XYZ company.” These are helpful to learn more about so one can broaden their knowledge.
In general, VC firms are interested in individuals that read about Venture Capital in their spare time. This could range from learning about the cool technology companies, subscribing to newsletter, or following Medium bloggers. By staying familiar on the latest topics in the industry, individuals can display their knowledge of market evolution and form opinions on different important companies and new discoveries. To stay on top of this listen in to VC Fireside Chat and sign up for newsletters from VC Firms.
SaaS (Software as a service) metrics are also good to know. These are used by many firms and will come up in conversations. Additionally, be sure to practice your basic business skills such as looking at the market, analyzing a company, and knowing how to evaluate it.
If you still need to gain some early experience, be sure to check out some opportunities in these places:
Contrary Capital
Dorm Room Fund (Campus Rep Program)
Harvard Innovation Lab
VC Interview Tips
Do you have in interview with a VC firm coming up? If so, congratulations and make sure to read below to prepare! If not, this information will definitely still serve you well in the future.
Know the Firm
There are many different types of venture capital firms (See our article "About VC: The Basics") that provide capital at different stages in the life-cycle of a startup. Knowing exactly what the firm does, and what kind of companies that they target, is the first key to preparing for your interview.
Know the Role
This can be broken into a number of different areas within venture capital work.
Dealflow
Sourcing information about new companies, conducting market research about possible areas of success are central tasks of VC employees.
Decision-making
Deciding where the limited capital that is managed by VCs will be allocated is another important job within VC.
Diligent Analysis
Financial analysis whether it’s fundamental or complex quant is the foundation of all investments in the financial world.
Deal-making
Negotiating deals with target companies is a crucial component of finding success in VC. Individuals with strong interpersonal skills can exceed here.
VC Recruiting at Harvard
At Harvard, the recruitment timeline is very similar to banking, consulting, and tech where interviews occur in September and early October. Be sure to look out for opportunities with VC on the Crimson Careers Portal.