Talent

Top 10 tips on how to pursue a career in VC

The Space Capital Podcast |

August 30, 2020

Talent

Top 10 tips on how to pursue a career in VC

|

August 30, 2020

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Talent

Top 10 tips on how to pursue a career in VC


1. Learn about and understand the venture capital industry. This means understanding the lingo, knowing top funds, and what aspect of venture capital you find interesting. Understand what aspect of venture capital you find interesting and research it. Here are some resources including books, podcasts, programs and more that can help you:

2. Understand the reality of venture capitalists. Venture capital roles focus on these six areas:

  • Sourcing – Finding new startups to invest in and making the initial outreach.
  • Deal Execution – Conducting due diligence on potential startup investments, analyzing their markets and financial projections, and negotiating deal terms.
  • Portfolio Company Support – Helping portfolio companies with everything from recruiting to sales and marketing to engineering to fundraising and administrative and financial issues.
  • Networking and Brand-Building – Attending events and conferences, publishing content online, and speaking with others in the industry, such as lawyers and bankers who work with startups.
  • Fundraising and LP Relations – Helping the firm raise new funds, reporting to existing Limited Partners (LPs), and finding new investors for future funds.
  • Internal Operations and Other Tasks – These include administrative tasks, such as hiring for jobs in investor relations, accounting/legal, and IT, and improving internal reporting and deal tracking.

3. Work on these key skills needed for the majority of venture capital funds

  • Cap tables
  • Market analysis
  • Python
  • Research & writing
  • Community & relationship building experience

4. Stay knowledgeable about the industry so that you are always prepared to answer questions about your focus and interests. Oftentimes, VC interviews will ask questions about markets and investments like:

  • Which startup would you invest in?
  • Which market is attractive?
  • Which markets should we avoid?

5. Follow venture capital funds to learn about what types of companies are being invested.

6. Try to get experience working with a startup or founding your own so that you understand the operational side of what funds are investing in and key aspects of startups.

7. Get training or experience with venture capital funds. If you are in college, look for venture capital competitions, student-led venture funds, or similar university venture organizations like the HBCUvc Fellowship. Also, look out for venture capital internships similar to Pear Ventures VC Bootcamp and Lerer Hippeau Summer Associates. For post-graduate, check out the Kaufmann Fellows.

8. Expand your network by talking to people in the venture industry and other founders. Do this by attending conferences, taking classes, or similar opportunities for example: youngStartUp Ventures.

9. Join organizations focused on the venture capital industry. At the student level, there are often school-based organizations or student-led venture capital funds that can help you get experience and learn about the industry.

10. Be open to any opportunity to get into the VC industry. Be dedicated and be persistent.

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Top 10 tips on how to pursue a career in VC

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