The barriers making VC hard to break into (& how navigate them)

Hi! I’m glad you’re here. You’ve made it to issue #60 of VC Demystified🪄.

My name’s Nicole - I’m a Principal at an early stage venture fund, and I know firsthand that VC can often be a black box. Breaking into the industry may feel daunting and resources can seem scarce and inaccessible. I wanted to put together a newsletter to give others the playbook I wish I had when I first started.

Today’s deep dive: Breaking into VC - why it’s so tough and how to build your way in

^{My personal mission is to open as many doors as possible for other people and this newsletter is just one avenue to do that. As always, I will continue to post VC insights daily for free across my socials.}

Read time: 4 minutes

The barriers making VC hard to break into (& how navigate them)

Breaking into venture capital can feel impossible. There’s no clear path, no standardized process, and very few open roles. It’s competitive, opaque, and often favors those already in the ecosystem.

But if you understand why it’s hard, you can start to build around those barriers and find creative ways in.

Here are 6 reasons why landing a role in VC is so difficult, and the most effective ways to navigate each one:

1. Limited Opportunities

Unlike traditional fields like banking or consulting, the number of VC firms and available roles is relatively small. According to the National Venture Capital Association, there are around 3,400 active VC firms in the U.S., which pales in comparison to the number of banks or consulting firms. Since many firms operate with lean teams, there simply aren’t many open positions at any given time. The roles that do become available are often filled quickly, as firms prefer to hire from a network of known and trusted individuals.

Navigating this:

• Build your network strategically. Attend industry events, participate in venture-related communities, and connect with investors on LinkedIn. Networking can help you learn about open roles before they’re publicized and gain referrals.

• Target firms beyond the big names. While top firms like Sequoia, Andreessen Horowitz, and Benchmark are highly desirable, smaller or newer firms may offer more opportunities for entry-level roles.

2. The Importance of Experience and Fit

VC firms look for candidates who bring unique value to their team. This might include a strong background in a specific industry, technical expertise, or hands-on experience with startups. They often prioritize hiring individuals who can demonstrate a deep understanding of the startup ecosystem and can source or evaluate deals. Firms also look for a cultural fit, someone who aligns with the firm’s mission, values, and focus areas.

Navigating this:

• Develop domain expertise. Gaining specialized knowledge in a sector (e.g., fintech, biotech, AI) can make you more attractive to firms that focus on these areas.

• Get startup experience. Working at a startup gives you insight into the challenges entrepreneurs face, helping you understand what makes a business venture-backable.

• Consider platform roles within VC. Positions at firms that are non-investing roles can be better suited to you and your background. Learn about the 6 types of platform roles here.

3. The “Catch-22” of VC Experience

Many VC roles require prior venture experience, creating a classic "catch-22" situation. Firms often look for candidates with a track record of sourcing deals, evaluating startups, or contributing to portfolio company growth, making it tough for newcomers to prove themselves.

Navigating this:

• Build your track record independently. Start sourcing deals on your own and share them with investors. This can help demonstrate your eye for promising startups.

• Get involved in angel investing. Even small investments can showcase your ability to identify promising companies. Platforms like Hustle Fund Angel Squad can be a great starting point (check out their 30-day free guest pass to join the community).

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