Introduction

Hey there! 👋

So you are ready to get your VC career started? That's amazing. We can only encourage you to give it a go. It is an amazing career choice and over the past few years some of the top talents worldwide have joined the ecosystem.

But it is quite challenging for anyone to understand how the industry works, finding good resources and ultimately breaking in.

Thats why we created Startup&VC a couple of years back - first as an educational platform with content on Instagram, then with our VC job board and newsletter and now finally with this guide (+ tools) to launch your venture capital career.

So welcome to the "VC Playbook - Launching your Venture Capital Career". And let's go.

We hope you'll like it. Give us feedback at hi@startupandvc.com

Why venture capital?

 Long before VC-backed companies dominated our everyday lives, venture capital was a job of minimal intrigue. New grads aimed for roles with high pay and linear upward growth as investment bankers and consultants. Then came the dot-com bubble. The late 1990s saw millions of venture capital dollars poured into internet-based startups. The rise in US technology stock equity valuations was reflected in the five-fold rise of the Nasdaq technology index. By 2000 the valuations began to take a nose-dive with the Nasdaq dropping by almost 77% by 2001, causing multiple internet companies to close their doors. Venture capital re-entered a period of stillness. 

Over the past 20 years, the industry built back its appeal. By 2020, a total of $130 billion in venture capital was invested in innovative tech startups. Today, venture-backed startups have seamlessly integrated into our everyday lives. The way we travel, order groceries, track our health, and stay connected to our peers are all through what was once scrappy startup ideas. Making the role of venture capitalist a role of prestige. Offering the chance to meet with founders building disruptive companies that could fundamentally change the way we live our lives. 

As more career switchers, industry experts, and ambitious grads turned their sights toward venture - a common theme persisted. Venture capital had become an industry of mystery and closed doors. Jobs are rarely publicly circulated, offers seemed to be going towards label-heavy applicants and diversity seemed to be deprioritized in investment teams. Luckily as venture made its way into mainstream media and younger, diverse individuals with non-traditional backgrounds slowly broke in - more content and resources became available for those who wanted to follow in their footsteps. . We are right there with them. This is why we are passionate about venture capital. This is why we wrote this book.  

Venture capital has notoriously been an industry of prestige, Ivy League degrees, and networks seemingly pre-built by powerful people. For that to change, it starts with accessibility because talent can be found anywhere and paired with resources and mentorship - anyone who truly wants to build a career in venture should and will be able to. 

It benefits all of us. If we want to invest in innovative companies and disruptive founders we should also be investing in creating a class of experienced and diverse investors who can bring their unique perspectives to the cap table

The Current State of Venture Capital Hiring 

In a recent report on venture capital job listings, Konrad Kordowski analyzed over 1400 job postings and 100 ads hiring for positions at all seniority levels across Startup&VC, John Gannon, InnovatorsRoom and LinkedIn. The data highlighted common qualities VCs seek in applicants and how that may be harming the diversity initiative for the industry. In terms of educational qualifications, engineering was the most sought-after degree across intern, analyst, associate, and investor roles. Business, computer science, economics, and finance fell into the remaining top five. For intern positions, 42% specifically required an engineering degree, and this figure was 35% for analyst roles. In total, the degrees that are commonly mentioned are also the most male-dominated degrees. For an industry with only 13% of VC partners as women, the degree preference surely contributes to slow growth toward gender equality.

When it comes to prior work experience, it’s no surprise that across seniority levels former VC experience is the most sought-after. For inter roles, 45% mentioned VC experience, 62% in analyst roles, 72% in associate roles, and 78% in investor roles. The remaining experience preference falls under startup, operating work, and consulting. While these asks align with the job description, they are near impossible to achieve, especially for current students or new grads without connections. Frequently, these connections are established through alumni networks or warm introductions to venture capital firms facilitated by individuals already entrenched in the industry.

This hiring process is what will perpetuate the challenges of underrepresented and overlooked applicants. What seems to happen in these cases is that investors are hiring people that come from a similar background as them and, in turn, will be investing in companies that they can relate to, creating a sea of homogeneity. The Atomico State of European Tech Report reiterates this sentiment. In 2022, a whopping 87% of ventura funding was raised by men-only founding teams, while funding of women-only teams dropped from 3% to 1% over the last four years. All all-male GPs were responsible for 84% of venture capital deployed, creating a cycle of under-representation. 

While DIE initiatives and VC programs continue to pop-up, it’s important to make sure real effort is being made in changing the industry's internal bias without simply appearing to be conscious of the issues. Eleanor Kaye, the executive director at the Newton Venture Program points out a common pattern in VC recruitment saying,

“VCs tend to be more effective at bringing in diverse or under-represented talent at entry level, but not as effective at helping them scale the ladder of seniority,”

Additionally, Sarah Finegan, Antler’s portfolio director, encourages VCs to post more openings across levels publicly in order to level the playing field and aid in the industry’s lack of diversity. It also involves the continued expansion of mentorship programs for underrepresented candidates. Nicole DeTommaso, Partner at Harlem Capital, is just one example of VC sharing from the inside and actively supporting those interested in the space.