How I Became a VC: Tips from the Inside
Actionable strategies for landing your first investing role
If you're new to venture capital, the recruiting process can seem daunting and opaque. Breaking in requires hard work and persistence when you're an outsider. The steps may seem obvious to experienced VCs, but are table stakes for aspiring new investors.
After recently going through the journey of breaking into VC myself, I've received countless questions from aspiring investors looking to follow a similar path. In this post, I'll provide an inside look at my own journey successfully landing a VC role as a newcomer. My goal is to demystify the recruiting process and share practical tips I wish I knew starting out. Even if you're a seasoned veteran, hopefully you'll discover some new nuggets that provide value. Now let's dive into the key strategies I leveraged to go from aspiring to actual VC...
Do the Job Before You Have the Job
In general, I agree with the conventional wisdom that the best way to break into VC is to already have experience in the industry. There are many unpaid VC scout programs like Dorm Room Fund, Rough Draft Ventures, and Contrary Capital that provide valuable context and exposure. When participating in these programs, its important to focus on developing your perspective on what makes an interesting company successful. The goal should be honing your ability to evaluate deals based on an informed point of view, whether you're acting as an investor or advisor. Through real world experience, you build the critical muscle of assessing companies and opportunities.
When I was recruiting, I gained very tangible experience by working with a number of funds in a fellow or intern capacity. Working with Unshackled Ventures, In-Q-Tel, and Firework Ventures allowed me to gain real reps on deals that mattered while simultaneously gave me more references for my skills.
Other ways to gain relevant experience before applying for full-time roles include:
Advise student startups or contribute to open source VC projects to build hands-on investing skills. Managing a small portfolio of your own allows you to showcase concrete examples of adding value.
Join your university's VC/PE club to attend speaker events and get exposure to funds with internship opportunities. The entrepreneurship club is also useful for learning about pitch competitions and emerging startups on campus.
Look into sector-specific conferences and clubs related to your interests like clean energy, sports analytics, healthcare, etc. These provide domain expertise through guest speakers.
Network, Network, Network…
So much VC recruiting comes down to personal connections and school in particular gives you a good excuse to talk to people. Here are some tips:
Attend VC events in your city & at your school and set up chats to expand your network. Come prepared with nuanced and researched perspective on areas and companies that you find interesting. Getting referrals from people at your target firms goes a long way since many roles aren't publicly posted. Often times, funds will hire just before closing a new fund - by talking to people & following the right resources, you’ll have a better chance of knowing when things become open.
Follow VC connectors on Twitter and on blogs, like Nicole DeTommaso and John Gannon who share jobs that are available.
Look into on-campus programs like Dorm Room Fund, Rough Draft Ventures, and Contrary Capital that rely on student venture scouts. These allow you to actively network with VCs and begin to develop deal flow.
Study Up
It’s always important to know what you’re talking about. Here are helpful resources:
Books:
Venture Deals by Brad Feld - The classic primer on VC deals.
The Hard Thing About Hard Things by Ben Horowitz - Required reading for understanding building startups.
The Lean Startup by Eric Ries - Foundational book on lean startup methodology.
Podcasts:
The Twenty Minute VC
Masters of Scale
The Pitch
Acquired
The Official Saastr Podcast
Newsletters
Inside Venture Capital
Strictly VC
John Gannon
Pro Rata
Sourcery
Startup Search
Look for the Right Fit
With recruiting, you want to find a firm that matches your goals and allows you to grow. Here are some final tips:
Be open to any of the major tech hubs like SF, NYC, and Boston where there are generally more opportunities. However, emerging ecosystems like Austin, LA, and Chicago (where I’m based) have fewer funds but may be more open to less traditional backgrounds.
If you’re optimizing for building a track record quickly, find a fund with a high deal volume - especially in the current market where things have progressed more slowly.
Make sure the firm invests in your verticals of interest and can improve your expertise through coaching, internal promotion, and direct experience.
Reflect on what VC stage and industry excites you most. This allows you to focus your search instead of applying broadly. For example, you may be interested in fintech, deep tech, enterprise software, etc. If you have a background in investment banking or PE, you may lean towards late-stage deals. If you like brainstorming early ideas, seed-stage startups may be a better fit.
The recruiting process takes perseverance, but using these strategies can help position you for success in landing your first VC role. Let me know if you have any other questions!