Breaking into VC: How to Stand Out from the Crowd?

This is a collaborative essay of Anna Ott, Aleksandra Laska, Louisa Süsserott, Jenny Dreier, Asha Mistry and Julia Dous on how to break into VC. We are sharing our top behind-the-scenes intel for all future VC talent enhancing a career in investing. Want to break into VC? Read on!

Getting a job in Venture Capital is hard. The industry is small. Job openings are rare. In 2023 Europe`s 20 most prominent VCs hired 39 (!) investors across levels:? 39% of new joiners are home-grown talent from inside the industry - welcoming (only) 23 new investors in London, Berlin and Paris, Zurich, Vienna and Stockholm. The beauty of VC land is though - while getting in is very difficult - once you're in, you're an insider and it will be very possible to work your way up.?

On top of this rare opportunity VC land is vast, with significant differences between stages like seed, early, and growth investing. Early-stage investors thrive in fast-paced environments, focusing on winning over others and betting on founders. In contrast, growth investors adopt a "slow cooker" approach, delving deep into sector and company analysis. These distinctions call for different personality traits and capabilities. There are also differences between sector-agnostic and sector-specific VCs, fund sizes (emerging and established) and more.

First of all: know if you really want a job in VC and why, then think where you fit best!

Want to break into VC? Read on! Those are our top behind-the-scenes intel.

??Be operationally and strategically astute: The most invaluable thing for becoming a valued investor is doing a startup. The gained operator experience and strategical skills are your most relevant “ticket” into the industry. Having done the legwork, understanding the mindset, and approach is crucial. Whilst everyone lives the buzz of sourcing and investing, the most valuable skill in VC is to advise founders to accelerate their goals and be successful. ?? The credential of being referred to as ‘someone very helpful' by entrepreneurs, other investors and peers might also be gained as a founders' mentor in accelerator programms. By using your subject matter expertise to help startups in a particular area, you can combine your previous experience with the startup world. Strong connections and a good reputation with founders can also offer unique insights and references into their investors' personalities, the firms, and the situation of their funds. They can also serve as a pathway into the application process of a VC firm.

?? Develop your (investment) thesis and build your (visionary) startup portfolio: Venture Capitalists have incredibly clear opinions (about everything) and spot trends early. ?? They bet on the future. Sometimes they are wrong. But sometimes VCs end up being very right! (That makes up for being wrong 100 times.) For touch points with investors, be humble but bold, have an opinion and be prepared to discuss your views of the world. Have one or 2 areas of interest that allow you to demonstrate your research skills, analytical abilities, and thought processes behind. ?? Depending on your access to capital, build an angel investing (anti) portfolio to show that you are (potentially) able to invest in some interesting startups. University investment clubs might be a good starting point. Later on, scout programs are a huge opportunity to network and mentoring support. Real or fantasy: show your ability to source deals.?

??Educate yourself: Be on top of trends and know the most iconic tech companies. Read articles and startups books to become technical about metrics, business models, and master VC Lingo. Before any interview, it's crucial to research the firm thoroughly. Understand their portfolio, which is a source of every investor's pride. Definitely know which 3 deals form VCs portfolio you adore, and would not have done. Learn about the people. Many investors are very active online, sharing insights through podcasts and posts. Engaging with this content can provide valuable insights. Additionally, enhance cognitive abilities as many VC firms use cognitive ability tests in hiring for junior and mid-level. These may include evaluations in numerical thinking and logical reasoning. Regular practice and preparation can help you excel in these assessments and show your readiness for the challenges in VC.??

??Make yourself seen: Despite many great VCs not being particularly public people, building your own personal brand and network is helpful. If you attract founders and the tech community with relevant content, VCs will be attracted to you. ?? Connect with people you admire and see how they think and learn. They provide guidance and commentary to make sense, share knowledge, and give access.?

Twirling!?

How did you break into VC? Please add hacks, sources, and networks that have been helpful for your career pathway into the industry - and tag along current or future VC talent who might benefit from this!

Thank you, Anna Ott , Aleksandra Laska , Jenny Dreier , Louisa Süsserott , and Asha M. for your valuable insights. My name is Julia Dous. With everything I do I aim to diversify Europe's cap tables. I achieve this as investor, talent advisor and chief of the Evangelistas.