| Topic Name: |
Technology vs Finance Experience |
| Message Name: |
Business first |
| Date Posted: |
01/18/2001 |
| In Reply To: |
Actually, as the original author of this note, I've taken a rather circuitous route in my career.
I do indeed have a business background, having done consulting for government tech clients, as well as management consulting. I briefly ran a start-up, and built a marketing organization for emerging technologies. What I lack, however, is formal financial training -- and have little hands on corporate finance work.
While I'm quite strong and broad on IT and Communications technologies, I also do not have a technical degree -- it's all been gained through hands-on work in consulting and in Fortune 100 research.
But what I take is the lesson that 'finance' per se, is the skill that VCs look for... not really the understanding of technology or the business skills I do have? |
| Message: |
I wouldn't be overly concerned with the corporate finance part of the equation. There is a great deal of value in your business experience. Generally, we view three components to our job - (1) "Getting in", setting an appropriate valuation with a flexible and protective structure, (2) "Getting big", working with management to maximize the company's growth, and (3) "Getting out", or producing a return to our investors through an IPO or sale of the company. You mentioned that you overcame the lack of a technical degree through "hands-on work" - your best corporate finance experience will be gained the same way. Corporate finance plays an important role in the process but my partners and I prioritize business skills over corporate finance skills. The real returns are created through building value during the investment period by dedicating resources to help our entrepreneurs and management teams execute their plan. That is purely a business function.
|
|
