How do you get into VC? A Daily Question with a Different Answer...

There are hundreds of thousands of results for “​​how to get into venture capital” - yet most GPs still get this question on a daily basis. Venture capital is a “sexy” industry that checks all of the boxes for many people - interesting, impactful (sometimes), and potentially lucrative (longer-term). It’s also much less sharp elbowed than private equity or banking. However, it’s also a very specific, odd duck of an industry. 

Venture capital is a small world, especially outside of Silicon Valley. Everyone generally knows each other, or of each other. It’s generally very barbelled - at the partner level and associate/senior associate level. And, the investment roles are always the most competitive (without past venture investing experience). There are only so many roles in certain ecosystems - Silicon Valley is by far the most active, and biggest. While a city like DC is the 6th or 7th largest metro area in the US, there is only 1 open VC role right now (at least from a quick scan on Indeed). Chicago is the 3rd largest metro area, and there are only 3 open VC roles now. While I’m sure I’m missing openings (VC hires a bit differently), there is not exactly an abundance of open, advertised opportunities. 

Although there are a limited number of direct VC opportunities, there are plenty of innovation-focused roles, and VC adjacent roles (investment analyst roles, banking roles, etc). Some of these roles can be bridges into venture capital, but they also don’t help anyone stand out, or give direct VC experience. When it comes to VC hiring (for investment, and not portfolio enablement roles), it comes down to a few major themes:

1. Access - Your family, friends, or someone you know well (and vouches for you), invested in their fund. This is much less impactful for larger funds with institutional investors though. Having easy access to a GP does not mean they’ll be hired for any roles, but it will almost automatically put them in the mix for the role. Going to a traditional venture school (Ivy League) can also help with Silicon Valley firms - they have pipelines into specific schools, and are much more likely to hire directly. 

2. Direct experience - You have invested in similar types of companies (industry, stage, etc) as an angel, through an angel group, or worked on real deals with someone (CVC, syndicate, etc). Direct experience is not all that common - especially coupled with multiple closed deals, real results, and a sourcing network. Even if you have a smaller sourcing network for deals and have only diligenced deals for a year or two, it should give you a leg up. 

3. Fundraising ties - It’s no secret that fundraising is the bane of a GP’s existence, especially at smaller funds. I’ve seen many funds hire well connected people, even with little to no investing experience on the investment teams - this comes down to fundraising ties. If someone can bring in investors, the GPs figure they can learn how to invest on the job (and also make their fundraising jobs much easier). 

4. Timing and luck - roles pop up somewhat randomly, and timing (just like deal returns and vintage results) can be a big factor. If you’re in the right place at the right time, you stand a much better chance of being hired. After all, if there is a real opening and you make a great impression, you’ll already be ahead. 

Theme 1 is generally hard to manufacture - you either have this access, or don’t. It’s also a way to enter the hiring dance, but does not necessarily get you a dance partner. Unless there is a direct skillset GPs need, you won’t (usually) be hired - though fundraising (theme 3) is a key pain point for many sub $100m funds (I’ve never had theme 1 or 3 myself). If someone has theme 1, they are more likely to have theme 3 too - and this access to money could be a way to leapfrog more traditionally qualified candidates. After all, fundraising for smaller funds generally comes from relationships and a network - even the best fundraisers (super outgoing, personable, fun, knowledgeable) can’t beat existing relationships. I joke around with colleagues about this “country club contribution,” where someone can much more easily pass the hat with families they’ve known since they were a kid. It’s not a fair situation, but it’s a real one.

If you don’t have theme 1 and/or 3, you might need theme 2 or 4. Theme 4 comes down to being able to find roles either before they’re posted, or as soon as they’re posted. You want to be one of the most visible candidates, and most vocal. Venture postings tend to get a ton of applications, especially at the associate/senior associate levels. Standing out is critical, and showing hustle is a way to stand out – it’s shocking how few potential hires will go the extra mile in a hiring process. The extra mile is not showing up early to interviews or asking a ton of questions - it’s showing that you can do the job. Bringing a few potential deals, asking to diligence some of the deals in their pipeline, or even bringing a possible LP (though that is very rare). I doubt any of this work translates into an actual deal or diligence that’s used in a memo, but it shows a willingness to jump in - and if you have the basic building blocks for the role.

However, theme 2 is the best way (outside of theme 3) into venture capital. Having real, tangible experience is the best way to show you’re qualified, and committed. Every time I mention the “tangible experience” part, I’ll get a groan, and something like “that’s the whole point - I can’t get into VC!” But, there are side doors and different alleyways most potential hires are ignoring:

1. Invest your own money in deals - this is the hardest, with the highest threshold (you have to be accredited, and willing to lose the money). Investing in a syndicate, or someone else’s deal doesn’t count - it needs to be deals you sourced, and invested in. I wouldn’t expect to see this in any potential hires, but this can be much more doable for mid-career changes. If someone is a former lawyer or banker, they might be accredited, and have the ability to risk their own money to prove they can find/invest in good deals. Having a portfolio of deals, especially with results, can help a mid-career switcher land in a principal level role too. (Great) track records are not all that common for non-partner hires, and real sourcing networks help give you a boost from the associate level to principal level. 

2. Intern, or work for an angel investment group - angel groups are generally very stretched, and open to help. While running a group is often a part-time job, it can be a full-time job too – if you can stomach a lower salary ($30k-80k). The job is not glamorous and not necessarily easy, but it’s also a way to get deal experience, meet angels, and build your own sourcing network. There is also not a lot of pressure to know exactly what you’re doing right out of the gate, since members make their own investment decisions and will probably bring the initial deals. 

3. Work for a Super Angel - superangels may, or may not pay for the help - the largest ones will be most tolerant of an actual 1099 situation though. This may not be a permanent setup, but helping them organize and track their deals is a way to get into the game – and build your own expertise/network. Most of these superangels also work with funds, and have relationships that could be beneficial - especially for theme 4 (luck and timing). If you’re visible to these funds on a regular basis, they’re much more likely to mention possible roles to you – before posting them anywhere. Having the right basic building blocks for the role is important, but being visible on a recurring basis is the way to actually find the role. 

4. Work for an Accelerator - although this industry has been increasingly concentrated over the years, there are still plenty of landing spots. Accelerators generally involve sourcing very new ideas and founders, helping them hone their pitch and business, and then connecting them to funds. If you work for an accelerator, you’ll get exposure to the startup side, and fund side. Although this does not help build a track record, and is much less investment focused than even an angel group, it does get your foot in the door – and puts you in the same room as other funds on a regular basis. 

5. Intern for a Fund (potentially unpaid) - this is a little less common that it was years ago, but is a possible route to a full-time role. By working with a firm, you’re more likely to have access to community events (with other funds), work with other firms on deals, and gain relevant experience. If you’re working for free, I’d make sure it’s for a limited number of hours, and at your own pace (to some extent). 

6. Work for a Startup - this is a more traditional path, and one that I often hear from other VCs. It’s also a more common pathway in Silicon Valley. Experiencing a startup (even one that does not succeed) is a great way to get field experience, and build empathy for founders. However, direct investing experience generally seems to supersede direct startup experience outside of Silicon Valley - GPs likely view direct experience as being a more accurate corollary to job success. It’s also less training time, quicker contributions, and less risk of regret. Although it may be hard to jump into VC, associate and analyst level roles are not always exciting, or fun jobs. 

As you can see, there is not one door or pathway into the venture capital world. Some are more accessible than others, and some are definitely more useful or immediately valuable. Although there was a surge of new funds from 2020-2022, I doubt there will be a surge in future hires - the VC world (especially at the early stage), will likely remain a small one. 

While there is no easy button, finding side doors, and less competitive paths can help. It can also help you identify if you actually want to be in venture capital. Although the job might sound really interesting, or a great fit, you only know once you actually try it (or something similar). Working for an angel group, super angel, or accelerator is a slightly different way in – and a way to build immediately relevant experience for a role. It also puts you in the right rooms at the right times, which helps give you early access and intel on funds (knowing which ones could fit). The path might not be easy, but it can be rewarding. I ended up getting into VC in a very non-traditional manner - but I love almost every minute of it. This career path is not for everyone, but it can be the key to a very unique, impactful work life.