| Topic Name: |
Whether to join a VC |
| Message Name: |
Here are some thought on real experience |
| Date Posted: |
05/17/2000 |
| In Reply To: |
Hi,
You mentioned in your message that it is not a norm to be trained as an associate. It is better to go to get the real business experience.
I have the following questions
1. What kind of real business experiences do you think is relevant and important?
2. If a green hand is give the chance to learn and help handle everything from fund management, portofolio managment to investment due dillegence. According to your experiences and insight, is this right training for this person? And what else would you like to suggest?
Looking forward to hearing from you!
thanks
Jane
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| Message: |
To answer your Q. "What kind of real business experiences do you think is relevant and Important"?
Disclaimer: many backgrounds work and most VCs are looking for that intangible skill of being able to identify, evaluate, negotiate and exit private investments profitably.
Very bright is a given, direct mergers and acquisitions experience is very helpful, preferably from both a company and investment bank perspective. Experience valuing private and public companies, very helpful. Audit, Due Diligence work, and legal contract work all very helpful.
More specifically, a lot of operations experience, preferably with a start-up. Most VCs will be much more interested in your specific contribution than to titles. You want to have contributed martially to a companies growth, guided it through the various capital market events (private and public rounds), and a record of exposure to successful exits. Being a successful serial entrepreneur is a very good core. Institutional capital markets experience is also good for the mix. Strong financial skills (MBA) plus real accounting knowledge (CPA).
Put a logical mix together of the above, with top tier outfits, and a candidate is bringing something real. Your Rolodex is important.
VCs are often asked, or needed, to jump in and run companies for periods of time (at more senior levels). They serve on the boards. It takes real been-down-that-road knowledge.
Specific technology expertise is another avenue (the MD/MBA/Research type).
Who would you hire to make large, long term, investment selections and as a future potential partner?
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