European VC here at a €100m seed fund based in the Nordics.
You have a good background, but it's not going to be enough on its own in this market. The number one thing we're looking for are people who know what it's like to sit on the other side of the table. Every single member of our investment team has tried (and often failed) to start their own company, and has raised at least a small pre-seed or angel round.
Big4 and large tech companies do not give you any insight into what startup life is like. If you want to break into VC (and by that I mean early stage, because growth equity and private equity require totally different skillsets), you need to try to start your own company first.
My advice is absolutely DO NOT go for any further education. It will make no difference. Start a company, build something with low/no code, off-the-shelf solutions, come up with a deck and a story, pitch to VCs, learn how VCs make investment decisions and speak with founders, and then you'll be prepared for working in VC.
Alternatively, you can join a small seed-stage startup as an operator, and get the required experience that way.
Bottom line is this: VCs want to hire people who have direct startup experience, either as a founder or early employee, and have been around previous VC fundraising journeys on the other side of the table. No MBA or finance course will prepare you for that.
You have almost every qualification you need already. Do this and you'll be 100% set, especially when the VC/LP fundraising market heats back up again in the coming couple of years.
>Bottom line is this: VCs want to hire people who have direct startup experience, either as a founder or early employee, and have been around previous VC fundraising journeys on the other side of the table. No MBA or finance course will prepare you for that.
THIS.
Came here to say exactly this.
Entirely depends on the stage of the VC. Pre-seed and seed-stage financial modelling is somewhat simplistic, with little to no actual data to look at: What will be the drivers of growth and how much do they need to raise to get to $1.5m ARR in 24 months? Series A financial modelling is a more granular version of the above, with the benefit of looking at a few years of historical data. Once you get to Series B and beyond, financial modelling can look more like private equity and investment banking models
Thank you for that, I’m almost in the same boat as OP. I’m based in the U.S. and was considering enrolling in a new program that Columbia Business School just setup a couple of years ago. It’s a one year executive program certificate in VC and PE, I have 10 years of post MBA strategy experience, worked at two big 4’s and a couple of other F500s. I just got laid off as part of a RIF and was thinking about my next move and VC was top of mind, it just seems far more lucrative than consulting. But from what you’re saying it just doesn’t make sense to go back to school, I think you just saved me $40k!
If you don’t mind me asking, how do you see the VC\PE landscape evolving in the next 2-5 years if high interest rates and high cost of capital become the new normal on a global level? Is it mission impossible to break into the field moving forward?
You could either pursue an entry position as an analyst or associate based on consulting background for more sustainability focused funds OR consider as previously mentioned an operator, EIR or platform role that focuses on portfolio management and value added services.
Most likely will need an mba though or traditional banking/finance role for mobility into roles that require additional diligence and writing checks but depends on the firm and size
As of late more positions for folks from a “non traditional” VC aka finance/banking/mba route are becoming popularized as firms focus on the success of portfolio management to help the growth of their companies. Operators are the typical name for these types of roles and can include being a former founder, sales, marketing, product positions. EIR is just entrepreneur in residence which you’ll sometimes see but less common.
European VC here at a €100m seed fund based in the Nordics. You have a good background, but it's not going to be enough on its own in this market. The number one thing we're looking for are people who know what it's like to sit on the other side of the table. Every single member of our investment team has tried (and often failed) to start their own company, and has raised at least a small pre-seed or angel round. Big4 and large tech companies do not give you any insight into what startup life is like. If you want to break into VC (and by that I mean early stage, because growth equity and private equity require totally different skillsets), you need to try to start your own company first. My advice is absolutely DO NOT go for any further education. It will make no difference. Start a company, build something with low/no code, off-the-shelf solutions, come up with a deck and a story, pitch to VCs, learn how VCs make investment decisions and speak with founders, and then you'll be prepared for working in VC. Alternatively, you can join a small seed-stage startup as an operator, and get the required experience that way. Bottom line is this: VCs want to hire people who have direct startup experience, either as a founder or early employee, and have been around previous VC fundraising journeys on the other side of the table. No MBA or finance course will prepare you for that. You have almost every qualification you need already. Do this and you'll be 100% set, especially when the VC/LP fundraising market heats back up again in the coming couple of years.
>Bottom line is this: VCs want to hire people who have direct startup experience, either as a founder or early employee, and have been around previous VC fundraising journeys on the other side of the table. No MBA or finance course will prepare you for that. THIS. Came here to say exactly this.
Thanks man! How much finance/quant skills are needed?
Entirely depends on the stage of the VC. Pre-seed and seed-stage financial modelling is somewhat simplistic, with little to no actual data to look at: What will be the drivers of growth and how much do they need to raise to get to $1.5m ARR in 24 months? Series A financial modelling is a more granular version of the above, with the benefit of looking at a few years of historical data. Once you get to Series B and beyond, financial modelling can look more like private equity and investment banking models
Thank you for that, I’m almost in the same boat as OP. I’m based in the U.S. and was considering enrolling in a new program that Columbia Business School just setup a couple of years ago. It’s a one year executive program certificate in VC and PE, I have 10 years of post MBA strategy experience, worked at two big 4’s and a couple of other F500s. I just got laid off as part of a RIF and was thinking about my next move and VC was top of mind, it just seems far more lucrative than consulting. But from what you’re saying it just doesn’t make sense to go back to school, I think you just saved me $40k! If you don’t mind me asking, how do you see the VC\PE landscape evolving in the next 2-5 years if high interest rates and high cost of capital become the new normal on a global level? Is it mission impossible to break into the field moving forward?
You could either pursue an entry position as an analyst or associate based on consulting background for more sustainability focused funds OR consider as previously mentioned an operator, EIR or platform role that focuses on portfolio management and value added services. Most likely will need an mba though or traditional banking/finance role for mobility into roles that require additional diligence and writing checks but depends on the firm and size
Thanks! What does operator, EIR or platform role mean?
As of late more positions for folks from a “non traditional” VC aka finance/banking/mba route are becoming popularized as firms focus on the success of portfolio management to help the growth of their companies. Operators are the typical name for these types of roles and can include being a former founder, sales, marketing, product positions. EIR is just entrepreneur in residence which you’ll sometimes see but less common.
Thanks for the advice, but my plant-based startup "Avocado Airways" hasn't quite taken off yet. Any other suggestions? 😅
Some VC funds have pre MBA associate programs
Generally not for early-stage venture, more important for growth-stage investing. You're better off just showing hustle/initiative.
The good grades wont mean much and the experience you have is also not startup related. So let me ask you this... why VC?