Is VC for Me?
Wondering if VC is the right industry for you to pursue? Check out the most important skills to succeed within Venture Capital and Exclusive Advice from Alumni.
The Skills Required for Venture Capitalism
Check out the descriptions in each category below of important skills compiled by professionals within the industry:
Research and Analytical Skills
It is important to have experience with cash flow modeling and investment valuation techniques This is a basic skill that most individuals should have because it helps research specific companies and allows the VC to catch small details that could lead to a potential investment.
Communicational and People Skills
An aptitude for written and verbal communication makes work much more productive and ideas easier to express across the table when presenting or just discussing with the team. It also allows people to build connections with other entrepreneurs.
Decision-Making Skills
It is crucial to decide what factors are the most important in observing a company and its value and where one draws the line on a potential investment versus one that does not have potential.
Technical Skills
A strong knowledge of Excel and Powerpoint are essential.These skills help in creating the end-product to present to the team on your research or tasks that need to be completed.
Self-Motivation
In the VC field, there is not a tight schedule that needs to be followed on a day-to-day basis and you will not have people micromanaging you on a daily basis. Therefore, it is important that you are responsible for pushing yourself forward and scheduling what you should spend that day doing. Typically this is sourcing companies and learning how you can communicate with CEOs and Entrepreneurs.
Willingness to Learn
Working in VC will make one have to explore many different industries and learn of ways that he or she can articulate coherent conversations with CEOs and entrepreneurs in these fields. Therefore, it is important that one can be open to learning different information.
Time Management
VC work is very different from banking and consulting as one is not given specific projects to complete or a daily checklist. Instead, it requires one to direct their own time and find companies to present to their investment team.
Natural Curiosity and Creativity
Individuals thrive who are genuinely interested in the content within the VC field, whether that is sourcing for more companies or just learning more about the market. Some firms use case studies in interviews to gauge the applicants’ curiosity and creativity. They do this by evaluating how the applicant responds to different scenarios and expresses themself.
Advice from the Industry
Listen to what those working in Venture Capital have to say about what makes a good fit for the job.
“This job would be good for someone who has a knack for being detailed and thorough for research and also has an eye to see beyond the surface.”
- VC Investor
“Individuals who are more risk-seeking tend to do well in VC positions due to the fact that their mindset will not hinder their actions/research.They are more willing to go the extra mile to find the right information or get more information."
- VC Investor
“Individuals who enjoy focusing on various things and have a willingness to take time and talk to hundreds of people. It roots back down to natural curiosity.”
- Co-Founder at BGlobal Capital
“Anyone who could provide sufficient work could do this job, but individuals who succeed at it are those who have a competitive instinct. I don’t think people can learn to be competitive; you might be forced to feel competitive but that differs from feeling it in your guy.”
- Associate at a Biotech VC Firm
“Individuals who have high energy since they will have to constantly talk with many founders and also be the bridge between the VC Firm and the startup.”
- VC Partner, Harvard Class of 2018
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