Adam Ludwin, an associate with RRE Ventures in New York City, recently penned perhaps the most practical short guide to landing a lower-level job in venture capital.
Be forewarned: there are no shortcuts and the journey may seem arduous to all but the most highly motivated candidates, according to his reprinted article in Fortune. But that’s his point. After pointing out how few positions actually open up in the junior ranks of venture capital firms, Ludwin reveals his three-step process for landing that position. It goes well beyond the trite “join a start-up and get some experience” advice you hear all the time.
First, he says, “become fluent” in whatever industry sector you have chosen to specialize in (you have chosen to specialize, right?). Much like immersing yourself in a foreign culture and language, you’ve got to speak the language, know who the most active VCs in the sector are, what deals are getting done and at what valuations, and have an educated opinion about the newest companies to emerge. If it’s the tech sector, you need to know if AOL paid too much for The Huffington Post, the future of online advertising, or whether Facebook’s valuation will soar or plummet after its much-anticipated IPO.
To get fluent, Ludwin surprisingly recommends using Twitter to actively start following the top entrepreneurs. He suggests using RSS readers to browse the big tech blogs. “But most importantly, surround yourself with actual people who are fluent themselves. It’s a smaller community than you might think. Go to the events in the city you want to work in (check out www.meetup.com). Take as many coffee shop meetings as you can with people who can help you learn.”
Step two is understanding that your network, track record and reputation are worth more than your resume. It’s one thing to have an opinion about start-ups. It’s another thing to actually have helped a few, either financially or in connecting them to others. The best venture capitalists attract the best entrepreneurs. Why? Because they can prove what they’ve done for other entrepreneurs. “If you want to market yourself as an asset to a VC, there’s nothing more valuable than being at the center of a large network of entrepreneurs and technologists who respect, admire and trust your judgment and experience,” writes Ludwin. He goes on to explain how to build that trust and judgment track record, even if you are not yet working for a venture capital firm.
Finally, if you’re serious about working for a venture capital firm, you’d better be ready for a long-term commitment to “the journey.” It can take years, not months to break in and earn the big bucks. And many hours of research and homework along the way. That could mean watching your pals from business school accept offers at consulting firms now, while you stick to your dream.
You can read Ludwin’s full article at Fortune. In the meantime, what advice would you give someone trying to break in to the lower ranks of a venture capital firm today?
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