fooFighter wrote:
I'm curious as to why you guys think an engineering background is important for VC? As compared to people with mgt consulting xp or finance backgrounds with strong quant skills?
I'm a engineering major whos career changed to finance (w/o mba) so I'm interested :p
Because people generalize too much
The truth is that no particular background is "right" for VC. Certainly, business fundamentals are key in any VC, but there is really no reason whatsoever to think that you have a better chance as an engineer (or really for that matter as a finance guy).
VCs are unique in their specialization - and if you happen to have the "right mix" for THAT particular VC firm, you could be an easy hire. You may just as equally be totally boring to the next the VC firm. For instance, take a look at these guys:
https://www.archventure.com/ -- they invest almost exclusively in early stage, highly scientific stuff like new chemical polymers, etc. A background in say, chemical engineering, would be directly applicable to this firm. Spend the last 5 years doing strategic investments in plastics with DOW? Congrats, they'll probably want to talk to you.
That however, would be totally useless to a firm like say, Duchoissois - where frankly, knowledge of horses might be more valuable. See:
https://www.duch.com. Say instead, your background happens to be in marketing. In that case, a firm like Lake Capital might make sense for you. In other cases, you might just have exactly the right mix for one of their portfolio firms (this is a good way to get in too... join a portfolio firm, do good work, get your name known in the VC circles and then go from there). In other instances, maybe its something else. In one case, I know a guy who thinks he got a job because he happens to know a few rich people and thinks the firm hired him hoping he could bring in a few million in funding. Make no mistake about it though, just because you have the "right" mix, doesn't make you a shoe in.
VC and PE, frankly, is probably 90% networking, 5% what you know and 5% luck. You just gotta beat the ground and get into the club. A good example of this - I met a VC guy in the bahamas a while back, got his card and I called him and he pretty much told me, in no uncertain terms, that I had nothing to offer a VC firm and should just go "work at a hedge fund" since I could make more money anyway. Three months later, I emailed him asking if he knew anything about the firm I had an offer from. He wrote back that he didnt but... maybe there was something at his firm after all, and although they didnt usually hire interns, maybe they could make an exception. How does someone go from telling you that you don't stand a chance to suddenly almost pulling an offer out of a hat over email? The reason is simple: it's all about networking and breaking into the club.