You want to work in Venture Capital. What’s the best way to answer the question of why? (2024)

Many candidates we interview try to explain a transition into venture capital with a logical career progression. The challenge with that is that it’s hard to stand out and venture is all about standing out. A more effective approach is to start with the end: venture capital is about generating outsized returns by investing in talented entrepreneurs. So show your motivation to generate outsized returns, and your motivation to find and support talented entrepreneurs.

If you don´t know why don´t try to get in. This is not about having the right answer. There is no right answer. Venture Capital is a very specific and demanding job. If you don´t know why then why are you applying in the first place? I know why I wanted to be in Venture capital but this may not apply to you. I wanted to be at the forefront of technology, meet with great visionary tech leaders, do a bit of finance, a ton of networking, some strategy and a learn a lot of different things. I was also attracted to the deal making aspect of it. Today, I am looking for even bigger deals, bigger exits, bigger funds. This keeps me motivated to think that we are growing and building something with a right to exist in this very competitive world.

You're naturally curious and love exploring different industries, technologies, and markets. You have an analytical mindset that allows you to learn through exploration, and you're intuitive enough to see the bigger picture. You're not looking to be the entrepreneur; instead, you want to make a difference by making the right decisions and offering support to outstanding entrepreneurs and startups, helping them create a significant impact in the world.

For individuals pursuing a career in VC or CVC, a few key motivators rise to the surface. In my career, a passion for entrepreneurship, technological innovation, and incessant intellectual stimulation have been my guiding forces. The ability to enable groundbreaking ideas, tech, and disruptive business models has been incredibly inspiring.

There is no best answer. The best answer is the genuine why each individual has. For me it was to help startups navigate this challenging process and to allow myself to have the flexible lifestyle that I’ve been building my whole life so I can be there for our girls.

Having worked in P.E space, if you want to demonstrate your value in the venture capital industry, it's essential to present a holistic picture of your capabilities. Having learnt from my mistakes - Start by developing a robust investment thesis that reflects your deep understanding of market dynamics & potential opportunities. Then, focus on actively sourcing high-quality deal flow through networking - industry engagement. During the due diligence process, showcase your ability to conduct thorough analyses and identify key factors for success in potential investments. Highlight your track record, to illustrate your ability to spot promising ventures. Emphasize your capacity to provide value beyond capital by offering strategic guidance.

The most important task at a venture capital firm is determining which potential investments can provide the most long-term value. While you can use a variety of methods to estimate an investment's potential return. align your analysis with the firm's investment thesis, and remember that communication skills and critical thinking are as important as quantitative analysis. by describing your general methods of valuing companies and emphasizing that you always aim for the best possible deal. keep an open mind, and demonstrate your ability to think like a VC.

While it can be essential to have a career in VC all throughout, it can be equally important if one has built a career spanning different industries or functions beforehand. One may have experience in product management, commercial functions, etc., and can surely use his/her experience in these diverse functions while making critical decisions.It's even better if one has experience in running a startup previously. That way, that person can bring more to the table, in terms of providing mentorship or much-needed connections to the founders in the portfolio.

Showcase your dedication to pursuing a career in Venture Capital by highlighting any relevant education, certifications, internships, or networking efforts you've undertaken to immerse yourself in the field. Discuss any specific industry insights, market analyses, or investment theses you've developed to demonstrate your preparedness and passion for the role.

Consider how to convey what you bring to the table. For a DeepTech Fund: do you have a PhD or MD? For a consumer fund: do you have go-to-market experience? Were you a founder -- VCs value former operators quite highly. If you worked with another VC firm previously, how does that prepare you well for this new role in the new firm or fund?

In my organization, candidates demonstrating in depth knowledge and understanding in a niche segment with an ability to project most probable trends in the future based on their in depth knowledge is a preferred trait. Candidates network of stakeholders in that segment and demonstrating an ability to identify inflection points and disruptors in that segment is also appreciated.

VCs are helping founders invent the future. Key traits of an effective VC are enthusiasm and curiosity about what can be accomplished. Willingness to consider new problems, solutions, and markets is essential.

Showing a proactive approach to staying informed about industry trends and technologies can set you apart. By highlighting specific sectors or markets that intrigue you and showcasing a willingness to learn and adapt, you can convey your enthusiasm for continuous growth. Illustrating how you seek feedback, handle challenges, and embrace learning opportunities can strengthen your candidacy. Emphasizing openness to insights from entrepreneurs, investors, and mentors underscores your commitment to personal and professional development in the VC realm.

Venture Capital is a dynamic field requiring continuous learning about new technologies, business models, and market trends. Demonstrate your curiosity and proactive learning attitude by discussing how you stay updated with industry trends, your ongoing educational efforts (like attending webinars, courses, or conferences), or how you’ve engaged with startup ecosystems. This shows your commitment to not just participating in, but actively contributing to, the VC community.

This is what I love the most: being curious. One of the things I enjoy about Venture Capital is that it’s an ever-evolving industry. It never stops. Technology and innovation are constantly advancing, and there will always be new things to learn. I’ve learned not to succumb to FOMO over every new shiny thing that appears. My approach is simple: I know not everything will resonate with me, just a few things here and there. But when something truly excites me, I focus on it completely. My advice is straightforward: curiosity is the key to discovering what resonates with you. Embrace a curious mindset, and you will always have something to learn.

Cultural fit is critical in VC, as firms often have a strong culture and shared values. it's important to ensure that the firm's culture aligns with your own values and working style. This will help ensure a positive and productive work environment. It’s very important to have a clear understanding of your unique value proposition and what you bring to the table. Consider your skills, experience, and accomplishments, and how they align with the needs of the firm. Use this information to craft a compelling answer to why you are the right candidate, and why you deserve this job.

Discuss how you see yourself evolving within the industry, whether it's advancing to more senior roles within a VC firm, launching your own fund, or transitioning to entrepreneurship based on the insights and networks gained through VC experience.

This is the one space where you can truly be yourself. No matter what level you are at, you are still getting experience and getting to meet cool new founders. Getting into VC without having rich parents or have founded a billion dollar company yourself, is already a huge victory!! Now just continue to be curious and be helpful where possible. Don’t expect anything. Go into it as a learning experience…. And maybe 10-15 years down the line the connections you made, relationships you built, somehow turn into money (if that’s what you’re after) TLDR: Be helpful. Be curious. Don’t expect anything. Build relationships. Cross your fingers and bite your toes.

One of the key filters for a VC when considering new investments is the quality and strength of the management team. So, VCs have a highly tuned sense of character evaluation. The best VCs are calm and collected. They think and then choose their words carefully. The more your natural self matches these characteristics, the better your fit is likely to be.

Demonstrating genuine enthusiasm and a unique perspective can indeed make you stand out. By showcasing your values, interests, and real-life journey that led you to pursue a career in VC, you can create a compelling narrative that resonates with the firm. Your willingness to ask questions, express opinions, and show your true self can further highlight your potential as a valuable addition to the team. Embracing your personality and passion while staying true to your story is key to making a lasting impression and increasing your chances of securing a role in the VC field.

Every time someone asks me how they can get into venture capital, I always so “you shouldn’t”. Not because I am being condescending, but rather because the best route is being a founder first. Starting your career in VC will normally limit your ability to move to adjacent careers if you get fed up or things aren’t going well. Taking 2+ years in an operating/product role makes you more well rounded professional, a better VC, and will hedge your career risk.

I think the answer to “why” enter VC is different for everyone but I’ve seen over the years folks think VC is just networking, searching for deals and going to happy hours. I’d recommend first understanding how a VC fund makes money, the timeline of a fund, how deals are done and decisions are made. Then ask yourself if you want to be in VC and if you’re ready for the long game. Getting into VC isn’t the be all, succeeding in VC is the challenge and that requires a lot more than just networking. For me, I was always super curious, loved everything techie and wanted to be impactful. VC is a great way to combine multidisciplinary talents, feed that curiosity and bring substantial returns (over time).

Here's a great reason NOT to get involved in Venture Capital - you want to 'change the world'.VC investors do NOT change the world. Great founders do. Go build a company if that's your goal. Do NOT do VC.

The one thing we always look for in a candidate is what I call "demonstrable passion for venture". In my opinion, this trumps most paper credentials. What have you done in your past, that really demonstrates venture is something that you are interested in, and attracted to? There is no right and wrong answer, but actions speak louder than words.

I think what needs to be addressed is the lack of diversity in VC. As agreed by the UK government, more needed to be done to improve gender and ethnic diversity within the UK’s venture capital ecosystem. Just two per cent of funding goes to all-female founded businesses. So the big question is for VC to answer a what will they do improve the ratios, attract and develop diverse VC talent.