BUSINESS #9 - Vers mon metier d'analyste web 2.0
http://www.michaelgoldman.com/start-ups.htm
http://innonate.com/2006/12/30/the-web-20-valuation-project/
Interview
http://www.jobsearchdigest.com/insidethefirm/category/interview-questions/
Another way to up your chances at an interview -- do your research. Target a niche attractive to VC firms. Read the trade press or go to a large trade show and catch up on the buzz.
By far the best way to approach a venture capital firm is via a simple introduction to one of the professionals. "Johnny Trustworthy suggested I contact you about", will make a big difference. Part of your job should be finding people who are in a position to make this introduction. All VCs work with lots of lawyers, bankers, portfolio companies, and boards of directors. Poll your network to see who might know at the right people at these outfits as well as the VC firms themselves.
Then get access to VentureOne (a Reuters product) or VentureXpert (a Thomson Financial product). These databases are very expensive, but you should be able to get access at a local business school or at a friend's investment bank or venture capital firm.
VentureOne and VentureXpert chronicle investments reported by venture capital firms across the U.S. They give you the name of the company invested, which VC firms made the investment, how much was invested, and a short description of what the company does. By studying the information, you may glean an indication of what are currently considered hot investments. You might also start to see patterns where certain names of firms are repeatedly attached to companies that interest you. This info will help you focus your list of preferred venture capital firms.
Then hit the Web to find out about each of the companies in that space, the VCs that invested in them, and the opinions of journalists who write about the niche. Develop your own ideas about the market and find other private companies that haven't yet attracted investors. Trade shows are among the best way to research companies. Once you have developed ideas backed up by research, you can approach and impress a VC.
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Disclaimer: The titles used in venture capital do not necessarily correspond to common investment banking definitions, though they seem to be moving that direction. To muddy the water a little further, each venture capital firms will apply titles differently. An applicant should pay extra attention to the actual job description in venture capital.
Analyst/Associate -- entry level
If you are coming out of college and have little experience in the working world, this is your starting spot in the world of VC. This position is called associate or sometimes analyst, depending on the firm. Be aware that many firms do not hire straight out of undergrad (because hands-on experience is such an important component to the business). Display some entrepreneurial activity in your background and some type-A, oddball experience --a pilot's license, racing a sailboat to Bermuda, running an investment club of students, starting a boxer shorts company, and so forth. Most importantly, you need to be fun, confident, quantitatively skilled and willing to work hard.
Associate/Senior Associate/Principal/V.P. -- partner track
If you have industry experience (e.g., telecommunications, medical devices, consumer products) and/or have your MBA, this is the position you're shooting for. This position is often considered "partner track." An MBA is almost always a prerequisite. The most important attribute is to show good judgment and impeccable schmoozing talents.
Junior Partner/General Partner
This position enables you to make investment decisions. It is only conferred on those who have very deep industry experience or those who have shown they can make such decisions at another firm. The good news is it is not uncommon for serial entrepreneurs and successful industry players to move directly into these positions. Venture capital is a business often entered into later in one's career. A good set of golf clubs is a prerequisite.
Managing Partner
Raise your own fund and start a venture capital firm! Figure out your probability of success before you start spending hundreds of hours banging on doors. Look at the numbers. There aren't many positions available, and the ones that exist are hard to find. Why?
- The venture capital industry is small. It is made up of only several hundred small firms (each consisting of between two and 40 people). People rarely leave venture capital once they're in. It's too much fun spending money on the latest ideas, working with highly motivated and intelligent people and the latest ideas, and making lots of money. It's also hard for a venture capitalist to transfer into more regimented careers.
- The old boys network is in full force in this corner of the economy. The portion of partners with degrees from Harvard and Stanford is very high.
- The demand for positions is so great that the openings are often filled through networking and not publicly advertised
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