![]() VCs continuously go through the same cycle: raise money with external Investors, deploy capital, monitor their startup portfolio, exit these companies (hopefully with a substantial gain), then raise the next fund, and onwards again. They typically co-lead a fund with one of the firm’s long-term partnersĪ helpful framework to understand what Venture Capitalists do is the Venture Capital cycle, which is based on the 1999 eponymous book by two Harvard researchers, Paul Gompers and Josh Lerner. ![]() I regularly train professionals with 10 or even 20 years of work experience who are totally new to Venture Capital. Partner: outsiders who make it to partner generally possess expertise the VC firm needs to raise a specific fund.It is not common for VC firms to recruit at that level Junior partners typically have around 5-7 years of relevant experience. Junior Partner: Venture Capital firms rarely use as many intermediate levels as investment banks or consultancies, where the path from analyst to partner (or managing director) goes through several steps including associate, vice-president, and principal.Analyst: entry-level positions are typically suited for professionals with less than two years of experience.You will fall in one of three categories depending on your seniority and the VC firm’s structure: Just like any other interview, it’s critical to have a good understanding of your future tasks to be able to convince recruiters-in this case, the firm’s partners-that you’re not only up for it but also ready to hit the ground running. This post and companion webinar will help you get in the right direction. Mastering the VC game, to paraphrase Jeff Bussgang’s book’s title, is a prerequisite. Getting the interview is a good first step, but you need to demonstrate more than enthusiasm to be hired. As I know first-hand from my students at HEC Paris and alumni of the VC Career Accelerator, the odds of success are very low. Naturally, it is possible to apply to job openings posted on various platforms. Your objective as an Aspiring VC is to be top of mind at your dream VC firm when a job finally opens. Venture Capital jobs are scarce and the competition for them is fierce, which is why you need to build a mousetrap to get one. I address VC pay structure in this webinar: How Much Do Venture Capitalists Make? Except in megafunds, GPs derive the bulk of their wealth- when they make any money at all-from something called carried interest: a profit-sharing scheme on the value they create when they liquidate their startup portfolio. Fund managers typically perceive 2% of their fund’s size in annual management fees, which helps them pay for salaries, rent, and other expenses. The main reason for such partner-heavy structures is the remuneration mechanism en vogue in Venture Capital. ![]() The solo GP (for General Partner, i.e., the Investor) trend has further polarized the industry’s structure, and while some of them are hiring, many are happy to remain nifty and thrifty. In reality, many Venture Capital firms are top-heavy structures with a couple of partners and junior resources-mostly interns. The Crunchbase-based analysis I mention in the webinar (at 4’30) clearly shows that, although there are thousands of VC firms, the top 100 make a large portion of the investments. Although the last five years saw an unprecedented level of dollars raised by VC firms and invested in startups, Venture Capital remains an exclusive asset class in terms of job openings. The first myth to debunk is that there’s a VC job waiting for you in every corner, and you just have to pitch an Investor to get one. I also show you how to build a mousetrap that is so effective, you will be top of mind at your dream Venture Capital firm next time there is an opening. In this guide and the companion webinar, I cover the critical points you need to know to get your Venture Capital job: key aspects of the role, what skills and prior experiences VC recruiters look for, when to apply, how to land an interview with Venture Capitalists and transform it into a job. I share my best practices from that experience and tips & tricks from interviews with Venture Capitalists worldwide. I’ve recruited and trained dozens of VC applicants over the years. They also struggle to get interviews for a Venture Capital job, and frequently fail the technical part of it (first and foremost the case study). Aspiring VCs often don’t understand Venture Capital well enough to apply at the right type of firm, or one that is interested in their skillset. ![]() They don’t come by often, and they are seldom advertised-except in large VC firms, mainly for entry-level positions. Jobs in Venture Capital are notoriously hard to land. ![]()
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