What is the route into venture capital as a career?

2013-11-06T08:22:04-05:00

I have started 2 companies that I bootstrapped with my own funds. (A web development firm and a management consulting firm). I love learning and am looking for the next career challenge of being involved with a "funded start-ups" that have received angel investor money and venture capital money.

My unique value that I bring is my USNA and USMC leadership experience of building and leading small teams in constrained settings coupled with my civilian experience of working in the high-tech and consulting industry.

I want to be on the team of the VC firm so that I they can leverage my expertise over ALL of their portfolio companies rather than working within any one of them individually. Improving the operations of the portfolio companies (and saving the ones that are on life support) improves their valuations and puts more money into the fund and the VC's pocket.

Seems like a valid plan to me, but what am I missing? Who should I talk to next?

Response by Capt Jonathan Pollock made Nov 6 at 2013 1:05 PM

2013-11-06T13:05:23-05:00

Bob, I currently work for a Venture Capitalist, but he is in this position because he has made his millions and now invests that money on his own.

The large VC firms seem to only hire MBAs. I got into my position because a friend was already working on the inside. There are less Venture Capitalists than MLB players (counting A, AA, & AAA farm systems) so that should give you an idea of the career's exclusivity.

Funded startups appear to have a bias towards age (mostly staffed by under 30 crowd). The ones I applied to also assumed that Infantry Officers like us were knuckle dragging cannon fodder, not leaders with extensive project management experience. Once I had civilian work experience in the Tech sector I was able to get my foot in the door, but it was only through people that had a friend or family member in the military.

My recommended course of action is to network as much as possible, by attending Meetups in your community that might have Startup people who attend.

Response by Lt Col Skip Fleshman made Nov 6 at 2013 8:06 PM

2013-11-06T20:06:36-05:00

Although many venture capitalists do have MBAs, right now most are more interested in having partners and associates with operating experience. That said, it's a niche community and most people get in via personal connections. One way to gain credibility with venture groups is to establish yourself as an expert in specific areas. It usually better to be a technical or functional area but could be more basic - such as building business at the early stage. I'd recommend writing, blogging, tweeting and consulting about these specific topics. At the end of the day you are going to someway need to figure out how to get to know venture capitalist personally. Sitting on boards or basic networking can help. Venture firms are small and the partners want to work with people they like.

Response by Cpl Ray Fernandez made Nov 6 at 2013 10:21 PM

2013-11-06T22:21:37-05:00

Sir, there are other routes into VC, you can parlay your experience into consulting and show your track record that way by working with existing companies, and then transition to a VC firm. Other than that networking like most of the other respondents have suggested will also work. The only connections I have in VC are former pro athlete friends also in the bay area who have decided to invest their wealth in the visions of others.

Response by LCDR Doug Nordman made Nov 11 at 2013 11:03 PM

2013-11-11T23:03:45-05:00

Bob, have you looked at networking through your local angel group, incubators, or AngelList?

With your startup creds, you'd hope to validate most of the MBA curriculum based on life experience...

Response by 1LT Private RallyPoint Member made Jun 9 at 2014 3:09 AM

2014-06-09T03:09:52-04:00

Dear Capt Moran,

It might help to network and let some of your colleagues know your objectives through your peer and mentor contacts at Wall Street Warfighters Foundation ( Goldman Sachs, JPMorgan Chase, Federal Reserve Bank of New York, the New York Stock Exchange, Bloomberg, Lincoln Financial Network, Citigroup, Vanguard, NASDAQ OMX Group, and the Chicago Board Options Exchange, Vanguard, Philadelphia Stock Exchange ). It helps to have business, accounting, finance, taxation, intellectual property, valuation, due diligence, contracts, investment regulation, management, operations, and domain knowledge.

Put together brief targeted resume based on your LinkedIn biosketch. Have colleagues critique.

Perhaps a little casual study of a few of the books from my collection below might be helpful.

Warmest Regards, Sandy

Accounting-21d.pdf
Angel-Capital--How-to-Raise-Early-Stage-Private-Equity-Financing.pdf
Attracting-Investors--A-Marketing-Approach-to-Finding-Funds-for-Your-Business.pdf
Biotech-Funding-Trends-Insights-from-Entrepreneurs-and-Investors.pdf
Biotechnology-Valuation.pdf
Biotechnology-and-the-Patent-System.pdf
Business-Analysis--Microsoft-Excel-2010.pdf
Business-Buyout-Agreements-2007.pdf
Business-Development--A-Guide-To-Small-Business-Strategy.pdf
Business-Development-for-the-Biotechnology-and-Pharmaceutical-Industry.pdf
Business-Insights--Advances-in-the-Stem-Cell-Industry.pdf
Business-Insights--The-Cancer-Market-Outlook-To-2015.pdf
Business-Plans-Handbook.pdf
CEO-Material.pdf
CEO-Road-Rules.pdf
CIO-Survival-Guide--The-Roles-and-Responsibilities-of-the-Chief-Information-Officer.pdf
Conquering-Innovation-Fatigue.pdf
Controllership.pdf
Corporate-Records-Handbook--Meetings-Minutes-Resolutions-4d.pdf
Corporate-Valuation--An-Easy-Guide-to-Measuring-Value.pdf
Domain-Names--How-to-Choose-n-Protect-A-Great-Name-for-Your-Website.pdf
Driving-Innovation--Intellectual-Property-Strategies-for-a-Dynamic-World.pdf
Driving-Your-Companys-Value.pdf
Due-Diligence--An-MA-Value-Creation-Approach.pdf
Due-Diligence--Planning-Questions-Issues.pdf
Engines-of-Innovation--The-Entrepreneurial-University.pdf
Enterprise-and-Venture-Capital-5d.pdf
Entrepreneurs-Guide-to-Writing-Business-Plans-and-Proposals.pdf
Entrepreneurship--The-Seeds-of-Success.pdf
Entrepreneurship-2d.pdf
Essentials-of-Licensing-Intellectual-Property.pdf
Excel-2010-Financials-Cookbook.pdf
Excel-for-the-CEO.pdf
Executive-Presence.pdf
Financial-Institutions-Valuations-Mergers-and-Acquisitions.pdf
Financial-and-Accounting-Guide-for-Not-for-Profit-Organizations-7d.pdf
Firing-at-Will.pdf
Floating-Your-Company--The-Essential-Guide-to-Going-Public-3d.pdf
Founders-At-Work--Stories-of-Startups-Early-Days.pdf
From-Concept-To-Wall-Street.pdf
Fundamentals-of-Selling.pdf
Governance.pdf
Handbook-of-Research-on-Innovation-and-Entrepreneurship.pdf
Handbook-of-Research-on-New-Venture-Creation.pdf
How-to-Prepare-a-Business-Plan.pdf
Industry-Immersion-Learning.pdf
Initial-Public-Offering-Guide-7d.pdf
Innovation-Leaders.pdf
Innovation-and-Commercialisation-in-the-Biopharmaceutical-Industry.pdf
Innovation-and-Entrepreneurship-in-Biotechnology.pdf
Innovation-in-the-Biopharmaceutical-Industry.pdf
Intellectual-Property--Valuation-Exploitation-and-Infringement-Damages.pdf
Intellectual-Property-Rights-in-Frontier-Industries.pdf
Internal-Investigations--A-Basic-Guide-Anyone-Can-Use.pdf
Internet-Searches-for-Vetting-Investigations-and-Open-Source-Intelligence.pdf
Interpreting-Company-Reports.pdf
Inventing Software.pdf
Joining-Forces--Making-One-Plus-One-Equal-Three-2d.pdf
Leading-Pharmaceutical-Innovation.pdf
Leading-in-the-Top-Team--The-CxO-Challenge.pdf
MBA-In-A-Day.pdf
Making-Sense-of-Intellectual-Capital.pdf
Managers-Guide-to-Operations-Management.pdf
Managing-Technological-Innovation.pdf
Mastering-Financial-Accounting-Essentials.pdf
Mergers-and-Acquisition-Basics-All-You-Need-To-Know.pdf
Mergers-and-Acquisitions--Business-Strategies-for-Accountants.pdf
Mergers-and-Acquisitions-2007.pdf
Mergers-and-Acquisitions-Basics--Negotiation-and-Deal-Structuring.pdf
Microsoft-Excel-2010-Data-Analysis-and-Business-Modeling.pdf
Microsoft-Office-365.pdf
Modern-Entrepreneur-and-Entrepreneurship.pdf
New-Venture-Investment--Choices-and-Consequences.pdf
Nolos-Patents-for-Beginners-5d-2006.pdf
Patent-Applications--A-Tool-for-Identifying-Advances-in-Polymer-Chemistry-RnD.pdf
Patent-It-Yourself-13d-2008.pdf
Patent-It-Yourself-1999.pdf
Patent-Law-for-Computer-Scientists.pdf
Patent-Savvy-for-Managers.pdf
Patent-Searching-Tools-n-Techniques.pdf
Private-Equity--Fund-Types-Risks-and-Returns-and-Regulation.pdf
Private-Foundations--Tax-Law-and-Compliance-3d.pdf
Protect-Your-Patent.pdf
Raising-Capital.pdf
Raising-Venture-Capital-for-the-Serious-Entrepreneur.pdf
Raising-Venture-Capital.pdf
Research-Proposals--A-Guide-to-Success-3d.pdf
Reverse-Mergers--Taking-a-Company-Public-Without-an-IPO.pdf
Roberts-Rules-of-Innovation.pdf
Royalty-Rates-For-Licensing-Intellectual-Property.pdf
Running-a-Public-Company.pdf
Sales-Presentation-Techniques.pdf
Sarbanes-Oxley-for-Nonprofit-Boards.pdf
Securing-Intellectual-Property.pdf
Seed-Stage-Venture-Investing.pdf
Sell-Yourself-Without-Selling-Your-Soul.pdf
Strategic-Alliances-Mergers-and-Acquisitions.pdf
Strategic-Innovation--New-Game-Strategies-for-Competitive-Advantage.pdf
Streetsmart-Financial-Basics-for-Nonprofit-Managers-3d.pdf
Surviving-And-Thriving-In-Uncertainty.pdf
Taking-Minutes-of-Meetings.pdf
Term-Sheets-and-Valuations-2003.pdf
Term-Sheets-and-Valuations-2004.pdf
The Dark Side Of Valuation - Valuing Old Tech New Tech and New Economy Companies.pdf
The-Business-of-Bioscience.pdf
The-Chemists-Companion-Guide-to-Patent-Law.pdf
The-Complete-CEO--The-Executives-Guide-to-Consistent-Peak-Performance.pdf
The-Complete-Nonprofit-Corporation-Kit-2007.pdf
The-Delivery-of-Regenerative-Medicines-and-Their-Impact-on-Healthcare.pdf
The-E-Myth-Revisited.pdf
The-Entrepreneurs-Guide-to-Advertising.pdf
The-Entrepreneurs-Guide-to-Hiring-and-Building-the-Team.pdf
The-Entrepreneurs-Guide-to-Raising-Capital.pdf
The-Entrepreneurs-Guide-to-Writing-Business-Plans-and-Proposals.pdf
The-Entrepreneurs-Guide-to-a-Biotech-Startup.pdf
The-Execution-Premium.pdf
The-Executive-Directors-Guide--To-Thriving-as-a-Nonprofit-Leader.pdf
The-Female-Brand--Using-The-Female-Mindset-To-Succeed-In-Business.pdf
The-Handbook-of-Nonprofit-Governance.pdf
The-Innovation-Handbook-2d.pdf
The-Inventors-Notebook-5d-2008.pdf
The-Law-of-Fundraising-4d.pdf
The-Management-of-People-in-Mergers-and-Acquisitions.pdf
The-McKinsey-Mind.pdf
The-New-Business-Road-Test-3d.pdf
The-New-CFO-Leadership-Manual.pdf
The-New-Players-in-Life-Science-Innovation.pdf
The-Nonprofit-Marketing-Guide.pdf
The-Old-Girls-Network.pdf
The-Open-Innovation-Marketplace.pdf
The-Other-Side-of-Innovation.pdf
The-Venture-Capital-Cycle.pdf
The-Venture-Capital-Investment-Process.pdf
The-Vest-Pocket-CFO-3d.pdf
Understanding-Entrepreneurship.pdf
Valuation--Measuring-and-Managing-The-Value-of-Companies.pdf
Valuation-for-MA--Building-Value-in-Private-Companies.pdf
Valuation-in-Life-Sciences--A-Practical-Guide-3d.pdf
Valuiing-Early-Stage-and-Venture-Backed-Companies.pdf
Venture-Capital--Investment-Strategies-Structures-and-Policies-2010.pdf
Venture-Capital-Contracting-and-the-Valuation-of-High-Technology-Firms.pdf
Venture-Capital-Funding-2d-2008.pdf
Venture-Capital-Funding-2d.pdf
Venture-Capital-and-the-Finance-of-Innovation-2d.pdf
What-Is-Your-MBA-IQ.pdf
Why-CEOs-Fail.pdf