The article provides a detailed guide on how to become a venture capitalist (VC). It highlights the importance of having a strong network, advanced analytical skills, and original research in the startup world. Here are some key takeaways:
Two paths to becoming a VC:
- Founding a successful startup: This is one way to become a VC, but it’s not easy. Founder VCs are judged on the success or failure of their startups.
- Going through a finance apprenticeship: This involves obtaining an MBA and learning advanced analytical skills.
Key credentials and assets:
- MBA from a top-tier program: An MBA can help your chances of getting an analyst/associate role at a VC firm.
- Strong network: Building relationships with other VCs, entrepreneurs, and industry experts is crucial in the startup world.
- Original research: Conducting original research on a topic related to the startup ecosystem can demonstrate your expertise and skills.
How to stand out as a candidate:
- Create original research: Research a specific aspect of the startup world and present it in a slide deck or blog post.
- Showcase your analytical skills: Demonstrate your ability to manipulate pivot tables, run Net Present Value (NPV) and discounted cash flow (DCF) calculations, and create presentations.
The importance of experience:
- Gain experience in the startup world: Working at a startup or participating in entrepreneurial programs can provide valuable insights and connections.
- Build relationships with VCs: Networking with VCs can lead to job opportunities or recommendations for future roles.
Conclusion:
Becoming a VC requires a combination of skills, experience, and networking. While an MBA from a top-tier program can be helpful, it’s not the only path to becoming a successful VC. Conducting original research, showcasing analytical skills, and building relationships with other VCs and entrepreneurs can also increase your chances of success in this field.
