As more VC funds pop-up the look of a typical interview process will vary. So much of the interview process is based on the funds team and thesis - diving into sector, geography, funding stage. However while you can’t predict every curveball question there are definitely ways you can prepare for the VC interview(s). If anything, looking and sounding prepared is one of the most important parts of creating a strong first impression.
So let’s take a look at the most common traits VC funds are looking for when interviewing applicants. Obviously depending on the seniority of the role, hard skills will be gauged to make sure you can do the practicalities of the work. Oftentimes hard skills are assessed through the resume screening, scenario questions and a case study after the first interview. We will get into the details of preparing and answering these questions in the next few sections.
For starters, domain edge is more often than not top on their list. Whether the fund is agnostic or sector specific, demonstrating strong expertise in related areas shows that you can fill gaps in their team. Likewise, building expertise into a new hire is difficult if they are not actively learning or coming from a background that has built up a knowledge base.
Next, would be a network edge. Like we’ve mentioned, being interconnected into the VC and startup world is essential for strong deal flow, portfolio support and industry knowledge. This is often gauged by questions about communities you’re a part of, looking at companies or past roles you’ve had and education.
Beyond these areas - there’s soft skills that are evaluated during most of your interview. A clear one is your communication skills. The way you answer questions, do you pause and think before speaking or ramble off answers? Are you logically breaking down your explanations? One tip that can be applied for most interviews is don’t be afraid to vocalize your thought process - let them hear how you deduce and negate points in your head.
In a role that is as high-risk as venture capital, adaptability is essential to succeed. Even with all the data, a strong team and positive predictions, the potential for unforeseen setbacks always exists.. Adaptability can be demonstrated through questions around how you’ve reacted to past failures? The way you navigated a career pivot? Or how you would respond in a theoretical high stress situation.
Frequently Asked VC Interview Questions
While questions may repeat themselves, make sure when you are preparing for interviews that you aren’t using the same answer for each fund. Tailoring your response based on what you would expect the fund to want will help you stick out. For example, if the fund is made up of former founders then emphasize the entrepreneurial experience you have or any side projects you started. Practice is essential for improvement, but avoid turning interview preparation into a scripted monologue.
Investment Questions
A current startup you’ve been following that you would invest in?
What companies should we invest in based on our portfolio?
Looking at our current portfolio, which company would you have not invested in? and why?
Looking at our current portfolio, which company would you have invested in? and why?
What would you look for when assessing whether or not to invest in a startup? What types of data would you request?
How do you calculate CACs?
What can you say about the ratio LTV/CAC?
Can you tell me what Customer Lifetime Value is?
What is the difference between pre money and post money?
How would you value a company in general?
Can you tell me more about the three financial statements?
How would you find startups?
How many cans of Coca Cola are drunk in London each day (or any other market sizing questions)?
What is the churn rate?
What are the trade-offs of a fixed price equity financing vs. convertible or SAFE notes?
Which one is generally the most relevant for a startup, EV/EBITDA or EV/Revenue?
What is more important between growth and profitability?
What three terms other than valuation would you want to negotiate with a founder?
Career Questions
Why do you want to work in a venture? Why VC?
Why would you like to join [Insert VC Fund]?
Trends you’ve noticed in the X industry?
What is the future of the X industry?
Why do you find X industry exciting?
Which podcasts, blogs, and authors do you follow and why?
What venture funds do you follow? In terms of their investments and why?
What sector are you most interested in researching and why?
Personal Questions
Tell us about yourself and explain your interest in the role
Why are you the best person for this position? / Why are you interested in this role?
What are skills you're currently actively working on improving? What are you doing to learn and improve?
What are your superpowers?
What does the perfect day of work look like to you?
Can you describe a time when you took a significant risk and what you learned from it?
How do you prioritize tasks and projects when everything seems important?
How would your peers describe your working style and collaboration approach?
What drives you outside of work, and how does it influence your decision-making in a professional setting?
Tell me about a time where you did something that you were not asked to do.
How do you handle disagreements or conflicts with colleagues or founders?
Where have you succeeded and struggled? What did you learn from those experiences?
Why VC as opposed to an operational role with a startup or launch your own company?
When faced with a start-up that's failing, how would you handle the situation emotionally and strategically?
How do you expect your day to look?
Entrepreneurial Questions
What is something you’ve done that most people haven’t?
What personal or professional experience are you most proud of to date?
What accomplishment are you most proud of so far in your career?
What is your experience with startups and/or venture capital/finance?
Share a story that illustrates how you’re entrepreneurial.
If you were to launch a startup, what would it be?
How do you assess an early-stage startup VS a later-stage startup?
What is a tech company in the public markets that is grossly undervalued/overvalued? Why?
Interview Roadmap
The Application: It will most likely start with a screening of your resume to see if you meet the general criteria of the role. At this stage, the main focus is on the hard skills and experience you can bring to the fund. Before submitting an application, make sure to edit your resume so the skills and experience they are looking for stands out. Unfortunately there’s not much you can do at this stage but if you have a connection to the fund, a warm intro tied to your application can certainly help you remain above the initial filter.
Screening Call: A screening call can take on a few forms, either a phone call, video interview or video recording with timed questions. This is a general screening usually by a recruiter or junior team member. The questions at this round are usually quite simple and meant to gauge your interest, excitement toward the role and awareness of the fund and asks.
Case Study: The next rounds can fall into 1:1 interviews with more senior members of the team or a take home activity. The case study is a common part of a VC interview and can range from a number of formats. Generally you’ll be asked to evaluate a startup for their portfolio or industry trend relevant to their fund. Other assignments could involve doing some financial modeling, competitive analysis or writing an investment memo.
Presentation: If you complete a case study and the initial work is strong, you will most likely be asked to present your work. It might be to one other individual or a group but this is prime time to demonstrate your thought process, communication skills, analysis and persuasion. Practice, practice, practice. With any role, you will learn and improve with time but certain skills like analytical thinking and strong communication are hard to instill. If you can prove competency in these areas and a strong work ethic you can bet on likely moving to the next round.
Interviewing with the Team: VC is known for having multiple rounds of interviews so apart from the initial screening you will most likely go through interviews while working your way up in seniority. The questions will generally fall into the categories we outlined above to see your cultural fit with the team, industry experience and analytical skills. Toward the end of the rounds you will most likely discuss compensation, long-term goals and administrative details like remote work or contract details. During this period any references you may have will also be contacted.
If all goes well, then you will be presented with a formal job offer and salary negotiation. There’s a few helpful compensation guides for VC you can use to gauge your offer along with benefits, hours and general details of the contract. Venture Capital careers has a salary and compensation page that is updated daily based on community submissions of their role, experience and salary. John Gannons blog has been running polls on VC compensation for the past five years. In 2022, 20,000+ VC Careers subscribers and others in the VC community were polled to see how much salary, carry, and bonus they’re getting. Finally, The Emerging Venture Capitalists Association (EVCA) has a yearly Compensation Survey.
