Hack Your Way Into Venture via Startup Stacking, then Accelerate Your VC Career via Skill Stacking
Hack Your Way Into Venture via Startup Stacking, then Accelerate Your VC Career via Skill Stacking
Venture Capital (VC) is by no means the best career path for everyone. In startup land, some people have passion for building (startup founders), some have passion for operating (startup employees), and some have passion for investing (startup angels and VCs). Many others completely skip startup land and go to corporate land, while others prefer the SMB land (small and medium businesses). People have made big success stories in all three lands by every definition of success there is.
If you happen to be rich, very well connected, or happen to make considerable extra income, you properly don’t need any of this, you can use your wealth and/or connections to either start angel investing for a few years to build a track record, then start a VC firm utilizing your connections. Or join a VC firm through your connections as an analyst and then climb the career ladder over 5–10 years (analyst, associate, principal, partner), or even start your own VC firm right away, recruit a team and then learn by doing. After all, VC is more of an apprenticeship based career, and no matter how you start, you will eventually learn from the many mistakes you will make along the way.
But if you’re early in your professional life, not rich nor connected, and you have passion for startup investing, i.e., venture, there are ways to hack your way into it. On the other hand, if you’ve already landed your first VC job as an analyst or associate, there are ways to accelerate your career trajectory and become an invaluable part of the team faster. In this post I will suggest an unconventional hacks for each scenario for you to consider.
Before we get into the details, let me say that there is no one-size-fits-all to get into venture. Many became VCs after successfully building and exiting one or multiple startups. Such experience helps a founder develop skills to identify potential good startups or founders to invest in, and offer the support new startups need in order to succeed. I also saw people from very unexpected backgrounds make their way to venture. Lawyers, journalists, podcasters, medical doctors, bankers, accountants, scientists, MBA’s, and many more.
Startup Stacking:
If you’re aiming for your first VC job, and you’re not rich or connected, you might want to consider startup stacking. Startup stacking basically means focusing on one skillset, but enriching it by working with as many startups as you can as a fractional contractor for a combination of cash and equity (cash being less than market average).
For example, if you’re experienced in finance, you can join five selective startups as a fractional CFO working for each one day a week. Similarly, if you’re an experienced product person, be a fractional product manager in as many selective startups as you can. If you’re an experienced engineer, be a fractional CTO. You can apply this to any role once you have built enough experience in it.
The key is to select startups carefully as if you’re a VC. Write an investment memo, then document in a journal your lessons learned in every startup you join. Over 3–5 years, you will have worked for, and invested in (owned shares) in maybe 10–15 startups. That’s your track record, and your deal sheet. Look for sample investment memos and deal sheets on the web, and keep updating these two documents regularly as you join/leave startups.
In addition, if you have an extra $100-$300, you may want to invest this amount in one company every month on equity crowdfunding platforms, given that you also write an investment memo for every startup you invest in, and update your deal sheet.
This will not guarantee you a job in venture, but it might give you a better chance or an advantage over others competing for the same VC job openings you’re applying for when you’re ready.
Skill Stacking:
If you’ve already landed your first VC job, it’s time for skill stacking. Skill stacking basically means building a stack of multiple skill sets. You won’t necessarily become the best in any of them, but the combination of those skills might give you a superpower.
In today’s startup land, a VC who has a stack of multiple skills might add tremendous value to the firm, or to the firm’s portfolio companies. You will be able to better evaluate deals, conduct better due diligence, and add true value to portfolio companies.
To do that, every year you may join one portfolio company in a different capacity on the side. For example, in one year, attend a product management course on Udemy.com, then join the product team in one portfolio company as an intern with no compensation or as a minimum wage contractor working 10–20 hours a week to help and learn. In another year, attend a coding course, then join the tech team as an intern working 10–20 hours a week. Then design for a year, then finance, then HR, etc… in 5–7 years you will learn all about different aspects of a startup.
Same! This will not guarantee you an accelerated path to partnership, but it might give you a better chance or an advantage over others competing for the same promotion in the firm.
What do you think? What other hack can you think of to either land a first time VC job, or to accelerate the path to partnership once you get in?
