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Ask HN: What is the best way to enter VC?

18 points by tomrod ↗ HN
I've been interested in the VC world for a long time, and would love to jump into the industry.

Would you recommend the best way to get into VC & the VC world is to work for a VC fund, or is the best method limited to having a successful startup?

2 comments

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catalinbraescu
A secretary working for a VC firm and a GP are both part of the VC world.

Please make clear which part of the VC world you're targeting. The path to become a clerk at a VC firm is way different tha the path to become a GP there.

propter_hoc
It's pretty straightforward to get an entry-level position at a firm. Analysts usually have a finance/business background with some tech industry exposure; these days, many firms also hire social media intern types. So if that's your situation, you have a fairly well-trod path.

Intermediate level positions (which are fairly uncommon) are often filled by promotion of analysts, the return of analysts after stints in MBA school, or the like.

For actual investment decision-making roles, the path isn't so obvious. The tricky part here is that VC (as with boutique investment firms in general) is a very "unique mix" driven industry. There are very few partners, whose "unique mix" of biographies are a critical part of the pitch that VCs make to their investors (LPs). Those LPs will be looking for firms made of a few amazingly accomplished, complementary individuals - and putting in 10 years of analyst/associate/principal work at boutique firms will generally not cut it for "partner" level.

If you want to be a partner at a firm, your honest best bet is to: 1. start a tech company, raise VC, and achieve a successful exit; 2. make a few angel investments of your own and achieve a solid track record; and 3. get recruited on the basis of 1. and 2.

(Also - These days some firms, notably a16z, are hiring subject-matter experts to serve in unique advisory roles. Your trajectory to get one of these roles is to ignore VC for most of your life and become a noted subject matter expert.)