There are no specific and unbreakable rules to break into VC I guess, but some of them can maximize your chance to enter in.
Diversity of background, mindset, and point of view is really important in the VC ecosystem to avoid biased and missed opportunities. Being a team composed of the best entrepreneurs, experienced analysts and investor masters are kinda like an Avengers Team. That’s the goal, being Avengers of Venture Capital.
It is useless trying to understand and establish a rank of importance according to the backgrounds. In my opinion, it is the full diversity of the fund that gives it the best chance to perform and to be placed on the best deals.
The objective is not to join a sector that does not correspond to you and then join VC. The main thing is to perform in areas where you are good. It’s nice to be good at something. Be good at something and you’ll like it. By loving it, you will become even stronger: snowball effect.
Based on the analysis of hundreds of analysts’ LinkedIn profiles, I noticed several similarities in their previous experiences. In no way does this reflect and ensure that this is what funds demand and expect. Each fund has its own expectations and demands. Moreover, these many analysts also have many soft and hard skills that have made and will make a difference throughout their careers.
✨ Merger & Acquisition and Private Equity
Unlike more “traditional” jobs within large groups, the M&A analyst is immediately confronted with a variety of issues, so he or she benefits from continuous learning at high speed. In order to meet their responsibilities, M&A analysts quickly acquire in-depth knowledge of a large number of sectors. In addition to sectoral knowledge, the demands of this profession require the development of rigorous work and, of course, technical skills. Indeed, having advised on several M&A transactions will make you absolutely legitimate to join a team that has the vocation to buy companies. You will thus move from the “advisory” side to the “investor” side
Junior in PE already touched several main tasks: study of the BM, sectorial and competitive analysis, the study of the financial history, reflections on the development strategy and the structuring of the operations, modeling, and Valuation works.
Being already trained in these sectors is an easier, and faster way for VC funds to hire juniors : fast learners, technical skilled, rigorous work and huge financial knowledge and practices.
They’ve got previous(es) founding experiences and know better than no one how it works.
By joining a VC fund after entrepreneurial experience provides a deep and priceless vision about startup markets, founders’ profile, and even growth process and actions.
Moreover, you take with you a whole network of entrepreneurs or employees in startups that are not yet or already very popular. It brings a qualitative and long-term deal flow for the fund. What’s better?
The royal road for students nowadays: a phenomenal learning curve, early exposure to strategic issues, integration into an internationally recognized firm. The strategic departments of large groups, corporate M&A teams, and private equity funds, in particular, are full of former consultants who reinvest the knowledge they have acquired during past assignments, but VC funds as well!
Consulting provides large and diverse knowledge and missions. Consultants have flawless analytical, problem-solving, and project management skills.
🔓 Venture Capital
Should I have to tell more?
Of course, having previous experience in VC is a plus plus to join a fund. You are the assurance that you have the skills and talent necessary to successfully manage the fund’s portfolio and future investments. Furthermore, your past actions and performance can be measured according to which fund you had your experiences in and which startups you and your fund invested in during those periods (We see you with your “Member Advisor” on LinkedIn).
But how can I have previous experience in VC, when I am asked to have one to enter VC? The egg before the chicken, or the chicken before the egg? Welcome to the world of Venture Capital.
by Matthis Dessus