Unlike private equity and investment banking, venture capital is an industry that many professionals enter later in their careers, after they’ve gained years of relevant, hands-on experience in a particular industry.
Thus the first questions are likely to encounter are why you want to make the switch to a venture capital job, and why this particular firm? You’ll need to do a significant amount of research on the firm in order to answer that question intelligently, while showcasing the experience you’ve gained that relates to their specialty.
Let’s assume you are focusing on a particular industry, such as technology, biotech, or energy, for instance. What are some recent key developments in the industry? What have been some of the most interesting IPOs or acquisitions in the industry in the past year or two? How does that relate to this venture capital firm’s portfolio companies, and what opportunities do you see moving forward? Discussing how industry events may affect their firm is an excellent way to demonstrate your in-depth industry knowledge and a way to impress the interviewer with your thoughtful analysis.
The venture capital world is highly interconnected. Personal networking is key to uncovering opportunities. So your interviewer may want to know what blogs you follow, what associations and events you attend, what social networks you’re a part of.
You may be thrown a technical question or case study, such as how to evaluate a portfolio company and its business plan. Unlike investment banking, where the numbers always tell the story, two things drive success in venture capital: a solid management team and market potential. Your ability to evaluate company leadership and to make a case for the sales potential of an emerging product or service will demonstrate your abilities as a venture capitalist.
There may be questions designed to ferret out character and “fit” with the firm, such as:
-Where do you see yourself in five years?
-What was your biggest success? Or failure? Why? How did you react?
-What managerial experience have you had?
-What do you look for in a venture?
The end of the interview gives you one more chance to differentiate yourself. This is a good time to ask a pointed question about the firm, to demonstrate your understanding of the firm’s specialty. You also want to ask what they are looking for in a candidate and how closely you measure up to that standard. End the interview with a strong close on the value you believe you can bring to their firm.
References:
Yale University School of Management www.som.yale.edu
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