Transitioning into Venture Capital and Private Equity: A comprehensive guide

In the past year, the sanitary crisis has critically affected the world, revealing a new ‘normal’ way of life. The job market has been significantly impacted, leading to unfortunate job losses for many globally. However, it has also created new opportunities for individuals to pursue entrepreneurship, change careers, or make investments. Nowadays, there is a plethora of digitalized work methods and newly developed tools available in the job market.

Covid19 brought serious consequences on both sides:

• The bad side: Job loss for many people.
• The good side: Opportunities for career change/transition.

If you find yourself in one of these cases or scenarios, you are fortunate to have the opportunity to challenge yourself and adapt to a new type of environment, to a place that will eventually, lead you to your dream job.

Venture capital & private equity (VC/PE) are, in simple terms, financing for startups or other young businesses that show potential for long-term growth. Each focused on different stages:

VC: Early stage (innovative, cutting-edge projects, startups).

PE: Late-stage (established traditional companies, unlisted companies).

Here is a short general guide with 5 steps you should follow to enter this amazing world:

STEP 1: Clarify your needs and ask yourself to determine what you really want to do.

A. WH-questions & Focus:

A.1. WHY Venture Capital?

Make a list of “+” & “-” so you to be sure about your next step or move; If this is something you really want to do, it should make sense based on your past experience.

VC Funds work with innovation, new ideas, futuristic firms, most of the time with founders, entrepreneurs, you should be curious about what’s next, have leadership skills to manage & mentor teams, and know how to work with transversal teams. Please remember that motivation & perseverance are key.

A.2. WHAT would make you a good VC?

- Expectations: How do you see yourself & how do you like the VC fund you want to work with? This will have a big impact on how you will present the investment thesis. Remember that the vision, mission, goals, and investment focus should be aligned, and match with the VC fund you choose.

- Expertise: Focus on the area you are good at, and the skills you have and combine the two.

- Content creation: Actual information with your expertise is worth its weight in gold.

- Network: Everywhere, school, alumni, family, friends, colleagues, etc.

- Emotional Intelligence: Please remember to put yourself in others’ shoes, in other words, treat people the way you want them to treat you.

- Portfolio Management: Typically you will be working with multiple projects/businesses at the same time (7–10 on average at the beginning).

A.3. WHO is your favorite/ideal role model?

Find your greatest role model, someone who has done, created, and accomplished something extraordinary, the ideal person with impeccable values, leadership, skills, and competencies. This will help you and guide you in situations when it comes to what decisions to make, what priorities to set and it will inspire you to achieve your goals.

A.4. WHEN should you apply?

Once you have acquired and improved skills in financial and data analysis, procurement, portfolio management, effective business review, negotiations, valuation methods, strategy, due diligence, networking, and interests in future trends within the next 5 or 7 years.

A.5. WHERE do you see yourself in 5 years?

Just remember that the future is written by you. So if you like VCs, it is your passion and you are good at it, then there is definitely a lot to do. Otherwise, you can always go the VC/PE route, learn from it and apply it to other areas, the skills you learn along the way are huge and will add value for a lifetime. Remember, life is only one, so go for it!☺️

A.6. WHICH are your favorite sectors?

Optimally, you should choose the topics you are really passionate about, and for that, you should also show your experience and expertise in those areas. For example, Fintech, Impact, Deeptech, B2b, B2C, Femtech, Proptech, etc.; get informed, try to do internships, read books, documents, study cases and learn more about the sector, this is a must to stand out from other candidates.

“The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and then starting on the first one.” — Mark Twain.

STEP 2: Get to know the market.

A. Once you have it clear that this is what you want to do:

- Prepare yourself and do some research.

- Get the expertise and select the main sectors you want to work with.

- Do some certifications, such as CFA (Chartered Financial Analyst), in between others.

- Meet people with similar interests, improve your network.

- Learn the steps of due diligence, strategy, and measurement of KPIs. Learn new technical and business skills such as valuation, analysis of data and financial information, statistical software.

- Read, there are many great books on strategy, business models, investments, venture capital, private equity, negotiations, and also economics that will take you to a new fascinating world and make you understand how capital and business works.

“If you want to build a successful business, make sure you have three things — a big market opportunity, great people, and more than enough capital.” — Richard Harroch.

STEP 3: Dare it.

A. Apply to:

- Internships.

- Search for jobs online and ask your network for possible opportunities.

- Participate in short-term projects to gain experience (2–3 months).

B. Find a Mentor:

- To keep you on track, motivate you, and persevere.

C. Network events:

- VC/ PE events.

- Entrepreneurship events. Attend hackathons, accelerators, and Family Office events.

“Winners never quit and quitters never win.” — Vince Lombardi.

STEP 4: Lead.

A. Lead new projects.

Once you are on the market, learn as much as you can because you’ll never get bored, I promise.

B. Take the initiative.

Make it happen.

C. Do your best to help.

Founders, teams, firms, and stakeholders.

“Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion.” — Jack Welch.

STEP 5: EQ.

A. Always empathy and synergy.

Learn to work with people, understand them, and work/advance as a team; after all, if you invest in a firm, is because you believe in them and it is indeed a win-win situation for both.

B. Be a mentor.

Share your knowledge with others.

C. Start your own blog & content.

Video, audio, articles, what suits you better.

“Make your team feel respected, empowered, and genuinely excited about the company’s mission.” — Tim Westergen.

BONUS: Be grateful every day.

Enjoy life and don’t forget to live your extra awesome life! 😉

Logic will get you from A to B. Imagination will take you everywhere.” — Albert Einstein.