A lot of people have been asking me what it takes to get into a VC firm. Few pointers:
- At an analyst level, most firms are looking for smart people, perhaps with some background in equity analysis or business analysis. It is not unusual to have fresh MBAs with some pre-MBA work experience to be considered.
- Different firms have different views on whether analyst position is a career track position or not. A lot of firms see this as a 2-3 year relationships. Some firms believe that analysts can graduate into leading investments.
- At a senior level, different firms look for different profiles. Somewhat later stage focussed firms are happy to look at people from equity and business analysis, consulting or investment banking backgrounds. A lot of early stage firms tend to want prior entrepreneurial or strong operating backgrounds. There are no simple rules here.
- VC business is a highly reference driven business, and there are very few openings. So make the right approach and engage early in the cycle.
- Different firms have very different formal and informal decision structures – understand them well before you jump in.
Many VC firms are setting up their presence in India, and hence there are perhaps more opportunities than would exist in stable state. Amongst the US venture firms, there are two approaches. Some firms want people to join in US, work there for a year or two, do a couple of deals by travelling down, and then take a call on whether they want a full time person in India. Other firms, such as Canaan, look for people who have the network and operating/entrepreneurial experience in India to directly be part of the India team.
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I am interested in VC opportunities. Mail me at vkiran.2004@gmail.com. Presently in USA, i will be shifting back to India.
Thanks
Hi all;
I am reading this blog since its inception.I was quite sure that this question will be raise here some day is it is already raised at and answered by many respected people working or reportiing from VC industry.All your links prove my point. Well I guess like all question “what it takes to be a VC” can have specific as well as generic answer.Generic answer is simple but may not suit all socil , economical conntexts.Solution is simple yet debatable.Solution is that to be a credible and successful VC its is best interst of of both enterprenuers and VC that VC himslef is a tried and tested enterprenuer.
An enterprenuer turn Vc will complement an unexperience enterprenuer in areas like understading of capital and its efficient allocation & utilisation,network needed as employee or customer and credibility in market.But I guess most important role an enterprenuer turned VC will perform is to get the trust and from the very person whom he is supprting “the enterprenuer”.
VC and enterprenuer relationship is long and difficult realtionship.With increasing noise but anti-Vc community maintaing and making this reationship to raech its definative end going to be challenging task.Like every realtionship this task will required raw material like trust and communication.Both the kind of liqudity we have presently i guess only provinding capital to a startup will not be sufficient for a rewarding relalationship.Now Vc have to be much better then a “dumbp always profit/loss” calculation entiity. An MBA or an investment banker will be treated like that. so If any onw wants to be a successful and RICH vc better start/join as start-up.
Now coming to specific part whcih is highly context based. Considering thse social and economical backgroud of India being a enterprenuer was last choise a decade ago. consequently we have very very limited supply fo enterprenuer who can now join us as VC. most of the people working in indina offices of VC from are MBA garduate from best institute.Their credibility is limted to the fact that they represent the best mnds in financail market or socialy also being a MBA fro top most school is regarded in india.But franking speaking I will never expect a MBA to have same level of understanding of enterprenuer, capital alloaction skilss,and temprament required. At most to me he is a best calculater or accountant i can have with link to a firm/people who undertand what i am doing as enterprenuer.
Yes exception do exist.You can be successful VC although being only a MBA.But You have to work like a dog.And if you are ready to work like a dog why dont u start a company.
Satpal Parmar
I am interested in this kind of VC opportunities. Please give me detailed information for this.
Alok,
Thanks for the clarification. But I do agree to your point that its a highly refrence driven thing.
Can you clarify more on what all comes under business analysis. ? Do you mean people into market research kind of roles where the role involves lots of number crunching. ?
Sorry to give an impression that its only MBAs who get hired into VC firms — just as an example, I dont have an MBA. The quantitative skills do help at an analyst level though, and they are also abundant in non-MBAs.