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This is for those who want to break into VC and are struggling to find a gig.
Felt like today was a good day to share.
This is for those who want to break into VC and are struggling to find a gig.
Felt like today was a good day to share.
I have been talking to so many young individuals who want to enter the industry and I can tell you, it’s probably one of the toughest jobs to not only receive, but also thrive in.
3) My start in VC began a few years ago when I worked for a VR startup. I helped the CEO close his $2M+ seed round in 8 wks after he had struggled to raise for 6 months. I was offered the chief of staff position and to drop out of my final year of college. I turned it down. Why?
4) Because I couldn’t understand for the life of me why a VC fund would invest in them. And this is what would start my journey into VC: just genuine curiosity. Not money, not fame, not status... just a genuine thirst for knowledge.
5) It turned out to be a good decision and the startup would not be able to raise a Series A.
6) With that, I ended up joining a family office in LA shortly thereafter. I soon realized that not all VC firms and FO’s are the same. The fact is many FO’s don’t get the same deal flow and access that VC funds and established FO’s do.
7) Stuck at a crossroads, with a huge network of VC’s, I reached out to Javelin Venture Partners MP @alex_gurevich who advised me to join an established fund manager at the ground level.
8) A few weeks later, I would reach out cold on Linkedin to the Co-Founder of Quake Capital about his new fund. He had me come in and I helped one of his portfolio companies raise their seed round in less than 3 months and made over 70+ VC introductions.
9) He was impressed so he offered me carried interest in his new fund when he raised it, 1-1 mentorship, etc... but unfortunately no pay since he needed the management fee to do so.
10) I was fine with it as I thought worst case scenario is I get a great education out of it. Fast forward, I have learned how to craft an LP Pitch Deck, analyze investments, source deals, help startups with hiring, form a competent data room, amongst a host of other value-adds.
11) When we began to raise the fund, we had soft commits for nearly 20% of our targeted fund size, mostly curated through a network I created over nine months of working for free.
12) And then COVID hit. I got “laid off” as he decided he wouldn’t raise until the pandemic ends, not knowing what innovation may look like moving forward. While I disagreed, I respected his decision.
13) So after getting laid off, I did four things: 1. Helped fund managers connect with other funds to support dealflow and each other’s portfolio during a rough time.
14) 2. Made over 100+ LP-GP introductions for emerging fund managers 3. Cultivate my network through a private podcast for my education 4. Help founders with their pitch decks, hiring, and channel partnerships resulting in over $25M+ in seed funding the past 6 months.
15) Part 1 helped me extend my network of VC’s
Part 2 helped me extend my network of LP’s
Part 3 helped me extend my network of founders
Part 4 helped me continue my ongoing education in investment.
Part 2 helped me extend my network of LP’s
Part 3 helped me extend my network of founders
Part 4 helped me continue my ongoing education in investment.
16) Now here’s the thing. I am pretty happy doing all of this. The fact is helping others in the entrepreneurial ecosystem is what your job is as a VC.
17) Along the way, I have met some amazing individuals including but not withstanding the former CSO of Carta, @S27G_ , the GP of Tribe Capital @arjunsethi, the Co-Founder of Wag, amongst many others.
18) But I am making NO MONEY!!! Entry level VC is not for everyone. It really is for people with an insatiable thirst for knowledge, innovation, and helping others.
19) Here are the low points:
20) 1. A prominent fund manager telling me that my “services” for connecting LP’s to GP’s is “scammy”... yet proceeds to ask for FREE introductions after her friends were introduced to LP’s... and then complains when she doesn’t get an introduction
21) Let it be known I still reached out to LP’s for her.
22) 2. Being put into a metaphorical box as an uber networker and expert fundraiser. I have now had six funds ask me to work for them part time and help with LP fundraising in exchange strictly for carry (which btw, is illegal).
23) 3. Two funds have rejected me after interviewing me because I “did not come from a brand name fund” (which I only found out through back channel conversations).
24) 4. One fund had me do due diligence on all their upcoming investments, only for them to reject me and ask if I can help them with LP fundraising (which I suspect is what they wanted all along).
25) For the young VC’s out there I know exactly what you are going through. Feeling like you have so much more to learn, so much more to offer, but not being given the chance. Stories like @gilxhernandez are not uncommon in this industry.
26) That is why it is important to pursue VC only if you live it, breathe it, and eat it. Because until you make partner at a fund of substance, money is hard to come by.
27) There are so many individuals who you know of, going through the struggle right now, notwithstanding: @MacConwell, @ArlanwasHere, @justanotherjai, who all are working just as tirelessly to break through into the upper echelon.
28) And if you don’t believe me, ask some of the people who have found above moderate success so far: @briannekimmel, @gaby_goldberg, @HarryStebbings, @dunkhippo33
29) They have all felt this same struggle at one point or another. They know how important timing and luck play into breaking through into VC. It sucks to say, working hard is not enough. It is one of very few industries where you can say that and it applies.
30) Their stories while inspiring can also be demoralizing. And with respect to them, I’m sure they would all agree.
31) To conclude, even though I am struggling to find a new gig in VC, I still feel grateful for the amazing lessons I have learned and friendships made including @theaknobel and @JuliaLipton, amongst many others!
32) Even more so, I am excited for my next step in the journey. I am not going to stop. For those who want to break into VC, if you have conviction, go for it, but do be warned.
33) For those who have broken in, I strongly urge you to pay it forward. I challenge you once a week, speak to an aspiring VC for at least 15 minutes. I have spent two hours per week for the past month talking to young individuals about the industry. So can you!!!
