Another key thing to learn? Whether the firm you’re interested in is an equal partnership, where all partners own the fund equally. Getting a sense of what the firm’s returns look like, “because most of my money is going to be made through carry,” and how easy it is for the firm to fundraise are important-especially if you plan to park at one place for the next 10 years. “Growth stage mature funds, who have been around a while, are just more secure.” Once you’re talking with these firms, asking questions about the LP base (institutional versus individuals) and the fund’s performance thus far can be useful in sussing out the firm’s position, says DeTommaso.Īlong those lines, another important thing to research when you’re looking, according to Meera Clark, a principal at Redpoint Ventures, is the long-term viability of a fund. “Emerging funds are more like startups,” and therefore slightly riskier, she argues. Those like Nicole DeTommaso, a senior associate at New York-based Harlem Capital, also advise would-be VCs to think about the security of their job when it comes to the firm they’re looking into. “This is very similar to what VCs do when they can’t get an introduction to a company they want to invest in.” “If you are looking to work at Fund X, but don’t know anybody that can introduce you to a partner there, work your relationship intelligence muscle to build a relationship with someone who can,” Siniscalco says. Warm introductions can help get your foot in the door for an initial phone call, according to Lotti Siniscalco, partner at Emergence Capital, who says that every time a close friend or founder introduces her to someone who is interested in the industry, she will take the call. Lionel Foster, who was hired as an investor at real estate technology firm Camber Creek in 2021, suggests asking for informational interviews to learn about different funds, how they categorize themselves, what their missions are, and their varying approaches to deploying capital. Some funds will try to lead rounds and take a hands-on approach to their portfolio companies, while others won’t take board seats and prefer to take a back-seat role in a round. Many funds are sector-specific, meaning that investors devote all their time to certain industries, like gaming, green technology, consumer, or A.I. It may sound obvious, but it’s important to know that not all VC firms are created equal: If you’re looking at an emerging fund manager, a growth-stage firm, or an established early-stage firm, the job and experience (including the experience required beforehand) can deviate dramatically. Industry newsletters like Term Sheet will keep you abreast on deal flow and the latest news in the private markets.
Reading investor substacks and blogs can be helpful, too. Insiders suggest following podcasts like 20VC and reading books like Peter Thiel’s Zero to One.
VENTURE CAPITAL FIRMS JOBS HOW TO
Getting started: How to research VC firmsĪ good first step is to saturate yourself in all things venture capital to learn as much as possible. Below, we’ve broken down how to break in. We interviewed or fielded insight from eleven insiders-ranging from general partners to people currently interviewing for entry-level roles in venture capital. We at Term Sheet wanted to shed light on how to get your foot in the industry. Venture capital has suddenly become a buzzy field-though it can feel intimidating to break into, particularly for women, people of color, or anyone who didn’t graduate from Stanford University. Billions of venture capital dollars have sloshed into startups, and there are too many funds to keep score, many of them with only a handful of people on staff. Since then, the tech industry has exploded. “Twenty-five years ago, being an entrepreneur wasn’t a real career choice…No one in their right mind would do it, and there were maybe only 40 active venture firms,” says James Currier, one of the founding partners of early-stage venture firm NFX, who has co-founded companies like Tickle, Wonderhill, and IronPearl. Even the idea of a “career path” for venture capitalists is a relatively new one.
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