#12 - What’s your superpower - Sourcing, Selecting, or Servicing? - 20 VC Founder

👋 Hey there! Welcome to Monday's edition of this week's Break Into VC Newsletter. We've got a packed issue focusing on everything you need to break into venture capital.

• Deep Dive On How to (Possibly) Get a Job in Venture Capital?

• Today’s Tips From VC Professional “What’s your superpower - Sourcing, Selecting, or Servicing?” Harry Stebbings.

• 10+ Venture Capital Job Opportunities.

• Upcoming Global Online and In Person Events List

• Must Read Articles on Startups, Tech & Venture Capital.

Join Our Slack Community -

Join our VC Crafter slack community to learn, network and craft your path to venture capital.

DEEP DIVE

How to (Possibly) Get a Job in Venture Capital. - VC Partner Interview.

So you’ve been thinking of applying for a job as an Analyst / Associate VC. It seems like a fun gig, and you think you’d be good at it. But it’s a little opaque as an industry, and tough to figure out how to get in. And what you don’t see, but is working against you, is that there’s 100 other people, many armed with degrees from MIT and stints at Facebook, who also want to get in.

Finding a job in venture capital is a little like looking for an apartment in San Francisco: it takes longer than you’d expect, feels discouraging as you try, and often happens through personal networks. But you know what? With effort, a strategy, and a little luck, most people find an apartment they like.

For those who really want it, getting a job in VC is similar: it takes a little longer, requires a bit of a strategy, and happens through serendipity. But it can happen. I’ve seen dozens of friends join and work as VCs, and at least that many try and fail to land a job. When my friends ask how to get a job in VC, here’s what I tell them (1).

Who this is for

This is for folks coming from outside industries, other functional areas, consulting or banking, grad school, etc, who are looking for junior investment roles like Analyst, Associate, or Principal.

It is not for…

• People who want to be GPs: This is a different ballgame, of which I know nothing.

• Ex-Entrepreneurs: These hires happen through relationships forged in the process of building a company. This is the best way to get a job with a good firm, but entrepreneurs don’t need career advice like this.

How to think about yourself

Let’s get a little Buddhist for a minute, and start with the self. What type of VC-in-waiting are you? I’ve seen three types of prospective VCs, best illustrated by how they see their role in the world.

“I want to be in the VC space”

To these people it’s an interchangeable sector, like consulting, banking, hedge funds, or real estate. They ask questions like “how do you sell companies to rebalance your portfolio?” They have little empathy for entrepreneurs, because they’re not builders themselves. They think it’s a financial game of punching buttons. They should choose another career.

“I want to be a VC”

These people want to sit at a table in a position of relative power, and meet interesting entrepreneurs every day. They want a VC identity. I still don’t think these people should try to get jobs in VC, but they can be salvaged. To be good though, they’ll have to become a little like the third group…

“I want to find good companies and help them be great.”

For these people, it’s not as much an identity thing as a purpose for finding and supporting entrepreneurs. They can make great junior VCs, and should try to get there. (They add a bonus in that they’re usually the least douchey version of junior VCs.)

If you’re in the second group, think carefully about whether it’s the right fit. If you’re in the third group, read on…

How to think about the job

OK, so you’re in the third group, but you’ve never been on the other side, so find it hard to understand what firms look for. Here’s what most VCs actually do (2):

1. Find great companies

2. Make the right decisions about investments

3. Close those investments over other firms

4. Help their companies grow

5. Help their companies exit when appropriate

As a junior person, you’ll probably be focused on the first 3 , and have a modified version:

1. Find great companies by being out in the community building strong relationships.

2. Have good judgment and strong insights about opportunities, and be able to communicate this and push through the inertia of a firm.

3. Represent the culture and brand of the firm, and leave a good impression.

4. Offer help to portfolio companies when you can be useful, but respect that the entrepreneur-firm relationship is owned by the Partner.

5. Stay the hell out of the way with potential exits, unless asked.

So that’s what you’ll need to be good at. Most of your work will be split between being out in the community and building relationships, and supporting thinking and diligence on opportunities. I bring this up to trigger two questions:

1. How can you build these skills long before you get to an interview?

2. How can you demonstrate them when you get into hiring conversations?

How to be useful before the door opens

Most VC hires are serendipitous. Ask 10 people, and you’ll hear 10 different paths into the industry. You’ll listen and think “damn, that’s pretty hard to replicate!” Don’t even try.

Venture is probabilistic. Because it’s not a linear, predictable path into the industry, you’ll need to take a longer-term systems view. Give yourself a couple years to do this, and be intentional about it.

Most opportunities seem to connect in second degree networks. The goal is knowing of these as they come up, and being top of mind when they do.

How can you build up the expertise, show value to entrepreneurs, investors, and the ecosystem, and bump into them often along the way? Increase the density of relevant people around you? Become known for something? Practice being helpful to entrepreneurs and investors?

There are a lot of ways to become a central node in the ecosystem, be helpful, and begin to connect:

• Find your niche of expertise, own it, write on it, and reach out to help people with it.

• Host events or conferences.

• Begin advising companies.

• Help accelerators with sourcing or advising.

• Build a following on ProductHunt.

• Start a syndicate on AngelList.

• …?

There are so many ways to start to become helpful, build a track record, and bump into founders and investors. None of these are likely to directly lead to a job on their own, but as a portfolio of activities it’s a good strategy.

The point is that people can begin thinking like an investor long before they get the chance. And in a recruiting situation, guess who’s going to get hired? The person who’s begun to build the mindset and network of an investor long before they get to an interview.

Take a look at the first 5 paragraphs from Bill Gurley’s announcement of Scott Belsky (2017 article) as Benchmark’s newest Partner. They’re all talking about the groundwork Scott was doing in the community, long before he started chatting with Benchmark. Just one quote:

We learned from Periscope’s founder, Kayvon Beykpour, about Scott’s role as a trusted advisor and confidant in the company’s earliest stages, culminating in Periscope’s acquisition by Twitter and subsequent integration.

Scott’s exceptional, but anyone can find their niche and begin being useful. More on that later.

How to talk to VC firms

I like things in threes. So I also see three types of active candidates in hiring conversations.

• The Passionate Candidate: She’s is super interested in tech and startups, and intrigued by Venture Capital. She’s keen. To her, it seems like VC would be a great place to work and learn. Spoiler: everybody thinks that. This candidate believes that her passion and interest will get her over the bar, but it won’t. And as conversations get deeper, she’ll only be able to stay at the subject surfaces. There are so many candidates, and VCs are so disinterested in training junior members of the team, that these candidates rarely get hired.

• The Credible Candidate: He’s not only engaged, like the Passionate Candidate, but also already thinks like an investor, in a way that is relevant to the firm. He has started building authentic relationships with great people in the entrepreneurial community, by being helpful, humble, and hungry to find and support great people.

  He thinks about what makes great companies great, and how new companies can get there. What’s their fundamental unit of value, and to whom? How do they reach customers? How do they create and capture value? Where do they sit in the stack? What do they do differently? The Credible Candidate can hold his own in these conversations, and his thinking maps well to the firm. As conversations get deeper, he can keep up, and move from general claims to specific examples. These candidates have a good chance of finding a role over time.

And while becoming the Credible Candidate is a great strategy, there’s a higher risk/reward path…

• The Notable Candidate: She can hold her own in conversations like the Credible Candidate, but steps out in different ways as well. She’s not afraid to have intelligent opinions that people might disagree with, and is comfortable respectfully challenging people on the other side of the table. In the best cases, people having conversations with her not only test her thinking, but learn something new about how the world works. And to be clear, this doesn’t mean getting into a bunch of arguments with VCs. It means being comfortable nudging a conversation to new territory, and being confident to have your own intelligent opinions.

That’s all I’ve got. Give yourself a few years to get there. Take a systems approach, and build relationships in productive, helpful ways. Be humble, helpful, and hungry, in that order. Understand the basic things you’ll have to be good at, and find ways to build and show those skills.

Good luck. It’s not a job for everybody, but for the right people, it’s a great round in your career.

TODAY’S TIPS FROM VC PROFESSIONAL

What’s your superpower - Sourcing, Selecting, or Servicing ?

As an aspiring venture capitalist, you've probably heard that passion for tech is just the starting point. But what does it really take to stand out and land a role at a VC firm? Let's dive into the three core areas where you need to show your potential:

1. Sourcing: Finding the Next Big Thing

Sourcing is all about discovering promising startups before everyone else does. It's like being a talent scout, but for companies instead of athletes or musicians. Here's how you can level up your sourcing game:

• Build a killer network: Attend startup events, join entrepreneurship clubs, and connect with founders on LinkedIn. The more people you know, the more likely you are to hear about exciting new companies.

• Develop a niche: Maybe you're passionate about fintech, or you know the ins and outs of AI. Becoming an expert in a specific area can help you spot trends and opportunities others might miss.

• Get creative: Don't just rely on the usual channels. Maybe you can find the next unicorn by scouring GitHub for interesting projects or keeping an eye on academic research that could lead to groundbreaking startups.

2. Selecting: Separating the Wheat from the Chaff

Once you've found potential investments, you need to figure out which ones are worth betting on. This is where your analytical skills come into play. To improve your selecting abilities:

• Study successful companies: Look at the early days of today's tech giants. What made them stand out? What red flags did others miss?

• Practice due diligence: Even if you're not making real investments yet, analyze startups as if you were. Dig into their financials, market potential, and team dynamics.

• Develop a framework: Create your own set of criteria for evaluating startups. This could include things like market size, competitive advantage, and founding team experience.

But this thing - come with experience….

3. Servicing: Adding Value Beyond the Check

Great VCs don't just provide money - they actively help their portfolio companies succeed. To excel in servicing:

• Offer tangible skills: Maybe you're a whiz at digital marketing or have experience scaling sales teams. Identify concrete ways you can help startups grow.

• Be a connector: Introduce founders to potential customers, employees, or partners. Your network can be incredibly valuable to young companies.

• Stay informed: Keep up with the latest trends and best practices in startup management. The more knowledge you have, the more valuable your advice will be.

Remember, VC firms are looking for people who can bring something unique to the table. By focusing on either of these three areas, you'll be well on your way to landing that dream VC role.

VC JOB OPPORTUNITIES

10+ VC Job Opportunities - Internship to Full Time Job Roles

• Associate - NFX | USA - Apply Here

• Associate - Aegis venture | USA - Apply Here

• Investor - Founder collective |  USA - Apply Here

• Operations and Investment Associate - Four Cities Capital | UK - Apply Here

• Venture Fellow - Axilor Venture | India - Apply Here

• Investment Associate 2024 - Truebridge Capital | USA - Apply Here

• VP/Directors - Dexter capital advisor | India - Apply Here

• Portfolio Talent Lead - Galaxy Ventue | USA - Apply Here

• Investment analyst - Speciale Invest | India - Apply Here

• Associate/Sr. Associate - Mirae Asset Capital Life Science | USA - Apply Here

• Ventures Associate, AI Investing - Point 74 Venture | USA - Apply Here

• Visiting Analyst scale invest - Germany - Apply Here

• Investment Manager Sustainable Materials and Circular Economy - Emeralnd | Swiss - Apply Here

DON’T FORGET

My journey from Big Tech SWE to Venture Capital

Check out SWE2VC article’s to get updates on how can someone from tech SWE break into VC.

VC EVENTS

Upcoming Global Online and In Person Startups & VC Events

• "Meet The VC" Fireside Chat with Jeff Blickman, Director of Palm Venture Studios. | July 22nd - Reserve Your Seat (Online)

• Venture Pulse Q2'24: Positive Signals in Tech | July 24th - Reserve Your Seat (Online)

• Masterclass with Investors: Tactics for Successful Portfolios | July 25th - Reserve Your Seat (Online)

• Builders + Backers Masterclass: VC Myths + Realities | July 25th - Reserve Your Seat (Online)

• AI Immersion Day | Accel + Google - July 26th - Reserve Your Seat (India, In Person)

• TEN Capital Network AMA: Climate Tech Investing | July 30th - Reserve Your Seat (Online)

• Fireside Chat with Rand Fishkin (Founder of Moz & SparkToro) on the DNA of an Entrepreneur | July 31st - Reserve Your Seat (Online)

• Venture Alpha Episode 1 - Data-driven VC investing | Aug 7th - Reserve Your Seat (Online)

VC CRAFTER’S PICKS

Must Read Articles On VC, Startups & AI

• Article: VC's Framework for Evaluating an AI Startup's Tech Stack. By Venture Curator.

• Article: Matt Turck of FirstMark Capital on Playing Fake VC

• Article: Chris Dixon of Andreessen Horowitz on Getting A Job In VC

• Article: Sarah Tavel of Greylock (formerly of BVP) on VC Pre-MBA Hiring

• Article: Adam Ludwin, formerly of RRE on So You’re an MBA Student that Wants to Work in VC?

• Quora: What Are Unconventional Ways To Get An Entry-Level Job At A VC Firm?

• LinkedIn Post: All-In-One Term Sheet Guide for Startup Founders & Aspiring Venture Capitalist.

Join our VC Crafter slack community to learn, network and craft your path to venture capital.

That’s It For Today! We’ll be back in your inbox On Wednesday.