In this third blog post, we’ll explore how VC professionals “got the job”! We’ll go into detail about the recruitment process, how to prepare for a career in VC, and resources available for professional development.
Each firm has its particular method of screening potential hires, and the variety – and at times, ambiguity – of these processes contributes to the general conception of VC as an “opaque” industry that is difficult to break into. Our interviewees conceded that the recruitment process is rather unclear compared to related industries such as investment banking and consulting, which have well-defined interview/hiring procedures. However, three common avenues of recruitment are: networking, previous work experience, and formal interviews.
Networking
Networking and knowing the right people to help get your foot in the door is even more emphasized in VC than in other industries. Several individuals noted that their firms didn’t even have formal applications, and instead began their recruitment processes with informal discussions that transitioned into more rigorous interviews and case studies. One interviewee even revealed that they’d never once applied via a formal application before and had gotten all their jobs through networking!
Previous Work Experience
Since VC companies on the whole are smaller than their consulting and finance counterparts, there is often no dedicated HR department to handle inquiries or job applications. In these cases, having previous work experience, especially in adjacent fields, enables one to build professional connections that act as a way into the VC ecosystem. For example, technology licensing officers (who facilitate technology transfer and commercialization of research that originates in universities) naturally work closely with both the creators of novel technologies and also potential investors, which provides a unique understanding of the commercialization process and the people that make it happen. Occasionally, connections are made in graduate school, before fully entering the workforce; Principal Investigators (PIs) who run more entrepreneurial labs often have a substantial network within VC and may introduce grad students who are interested in venture to their contacts.
Formal Interviews
Additionally, many venture firms have a demanding series of case studies and interviews that follow initial discussions with candidates. At one company, potential hires completed a ~10-hour case study that was then compared to the company’s own results. At another, applicants were given a week-long assignment to assess the competitive landscape of a given technology and to provide an investment recommendation. In addition to a comprehensive case study, most recruitment processes include several rounds of interviews. One interviewee explained that the main difference between different firms’ interview procedures is the order in which a candidate meets members of the company. Some companies have prospective hires speak with the most senior people first, while others save discussions with the most senior for applicants who make it to the end of the interview process.
Overall, the recruitment process for bio-focused VC varies significantly, but some common characteristics are: networking, leveraging professional experience and connections, and case studies and interviews. The best way to navigate the recruitment process is to prepare with people already in VC. You can reach out to alumni, work with the CAPD, or join relevant student groups such as the MIT Biotech Group or MIT Capital Partners.
Go back to the landing page or blog post #4!
Blog post by Abby Lo.
Published Sept 2021.