Road to a Venture Capital Career: Practical Strategies and Tips to Break Into The Industry

If someone has worked with high-tech companies on projects, he or she should by all means note it in their pitch to the hiring firm to show the value that they can add through specialized industry knowledge or contacts.

Give special attention/effort to firms that have recently raised a new fund somewhat larger than its last fund.

PEHub’s PE Week Wire and Dan Primack’s Term Sheet are great ways to get tipped on when VC firms are raising new funds.

Regardless of where a firm invests in terms of stage, a junior VC will need to be conversant in how pre- and post-money valuations, liquidation preference, antidilution provisions, and other standard terms affect investor ownership and expected returns.

Give special attention/effort to firms that have recently had a personnel change.

Three avenues to obtaining quality referrals that could turn into first meetings are LinkedIn, other entrepreneurs, and VC recruiters.

If someone had leadership experience within a startup (i.e., running a functional area of the business or the business itself), that’s even better.

prospective junior VC needs to be able to prove to a firm that he or she will be able to contribute from day one in order to get an offer. This means knowing the way around a capitalization table as well as how to understand standard terms in a term sheet.

In a typical early stage fund, the ratio of capital invested per partner is generally $50 million. Thus if you see a firm raising or closing a fund roughly $50 million or greater than the last fund, there is a good chance it is looking to add staff if it finds the right fit.