Lack of capital is the number one challenge startups face. They might have the right idea at the right time but lack the money needed to kick off their operations.
Since startups have a small proposition for attaining access to public funding, they need someone to pump their money into the business. This person is called a venture capitalist. Here’s an example of a venture capitalist bio.
In exchange, the venture capitalist will either be paid by the interest carried on their fund’s return or fees for managing the funds capital.
Skills Needed To Venture into VC
You might think becoming a venture capitalist is all about having deep pockets. Indeed, it’s a crucial requirement. Your money will lubricate the new startups to push their projects.
However, it’s not the only requirement. Remember, you’ll be making decisions that determine the future existence of a business.
This means that you’ll have to possess robust business guile to dissect and detect lucrative business ventures. Plus, the ability to foster it from its infancy to a full-grown business.
In return, you’re hoping that the liquidity event will be large enough to give back a significant portion of your original investment.
Academic Qualifications for a Career in Venture Capital
There’s no single pathway every successful venture capitalist followed. Ask a VC you know. They may even tell you they have no idea how they got into the career.
But it’s good to get a business degree or be an MBA graduate. These are vital because of the knowledge. The next important thing to have is a relevant job background.
Getting experience in finance, consulting, high-tech sectors or similar technical fields gives you the right footing.
Even better, experience as a venture analyst will give you direct admission to an established VC firm. This is because you have learned, gained experience, grown within the role, and can quickly become a professional VC investor.
How to Get a Job in VC
The simplest, and most popular way, of getting a job in a VC firm is to be a successful entrepreneur.
This is because you have managed to create a successful business and earned some good money. Plus, you might have the funds ready for investment opportunities. With such a background, any VC firm can quickly assimilate you.
But what if you don’t have all that?
In one of her articles, Sarah Dawney, an accomplished angel investor, gives the easiest method to get a job in VC if you don’t have an entrepreneurial background. That is working for startups.
Her model is simple. Immerse yourself in a startup, throwing all your skills to help the startup grow. Since you’re displaying your skills, word about you will spread faster to the startup’s investors.
The investors might find your skills desirable and offer you a position. That’s how she became the Director of Community at Accomplice.
A career in VC can be great for you if you are always looking for “the next big idea.” This means you have an analytical mindset that looks into a business and evaluates its potential.
If you can’t be alone in VC because you lack funds, start working for VC firms. You will gain critical skills to familiarize yourself with the business ecosystem.