So You Got A VC Interview. Now What?

Even if 80% of the VC game is getting your foot in the door, you still need to nail the interview.

Just want the VC interview guide? You can go here.

Venture capital is a hard career path to break into.

For starters, it’s a relatively tiny industry in many ways. Despite its outsized economic and cultural impact, there really aren’t that many firms or jobs. The National Venture Capital Association estimates there’s roughly 1,000 firms in the United States. While that might seem like a lot, the median assets managed by these firms doesn’t even top $40 million — which means leaner employee numbers compared to other asset management industries.

But its not just the scarcity of jobs that makes it difficult. VC is also far more heterogeneous than pretty much any other field — there’s wide variety in professionals’ backgrounds, firms’ strategies, and many other aspects. Unlike a job in, say, investment banking, there’s really no consistent interview playbook, because each firm differs so significantly and hires relatively infrequently.

That’s not to say there haven’t been efforts to specifically aid the preparation process. Websites like John Gannon’s blog document the considerable amount of writing by VCs sharing their paths into the industry and tips on getting access.

But what happens once you’re actually interviewing? It’s an area less focused on, because (a) it’s generally viewed as the easier part of the equation and (b) firms’ interview practices are as varied as their strategies and backgrounds.

That said, BeenThere decided to draw out some common potential experiences to help aspiring VCs prepare for that elusive opportunity. In pulling together our Venture Capital Interview Guide, we found some key themes across the feedback we received from our mentors and network in the VC space — here’s a starter pack of what you’ll need to know to succeed.

Know Thyself

Entering any interview process (VC or not), you need to understand the key goals of those interviewing you:

1. Understanding: Does this person understand the role and responsibilities they are applying for? Are they motivated, interested in and excited for this job at this firm?
2. Qualifications: Are they qualified to execute against the needs we have as an organization? Does this person fit with the culture of our firm? Will they work well with other team members?
3. Evidence: Do their background and experiences (as they explain it) support what they’re saying in relation to (1) and (2)?

No matter how well you execute on the first two goals, if you fail at #3, you’re dead in the water. Entering your interview, you need a crystal clear view of your experiences, interests, and goals, as well as a credible thesis on how these position you as a great candidate. What’s made your career a success to date, what core attributes drive you, why this is the right time for VC in your career, why your interests and talents are well suited — you shouldn’t get to this point without the understanding derived from thoughtful self-reflection.

Know The Firm

You’ll need to do deep research on your target firm(s) to understand their team, portfolio, and stated strategy to effectively position your history and experiences. Key areas of focus include current fund size and vintage year, target deal stage, check size range, industry/sector focus, portfolio companies, published theses/themes, how the fund pitches its value-add, and any publicly disclosed LPs.

Get granular here and have opinions. You’ll want to know the portfolio inside and out, as well as companies you think could be a good fit.

Know The Role

Responsibilities will vary across different roles, but can be bucketed into a few potential areas:

1. Dealflow: sourcing is a vital skillset, so your ability to add value here is often important. A relevant, wide-ranging network is essentially table stakes, and can be supplemented by outbound work (research, keeping up with VC newsletters/podcasts, conference attendance, thought leadership / blogging).
2. Decision-making / Perspective: Funds only have so much capital and time to deploy. Your ability to contribute to investment decisions should be supported by your own trend-level beliefs and perspectives.
3. Analysis/Diligence: All funds will diligence potential investments — the analytical rigor and emphasis on financial metrics will vary firm-by-firm and especially across investment stage. Later stage funds focus increasingly on metrics and financial analysis, whereas early investing often focuses on validation through analysis of the characteristics like idea, team, and market.
4. Deal-making: Sourcing, deciding and analyzing don’t close deals on their own. Structuring and negotiating deals to achieve an ideal allocation in rounds requires significant interpersonal skills and an ability to synthesize the above work alongside founder demands, competition from other firms, and more.
5. Portfolio Support: The level to which firms support or strive to assist portfolio companies varies, but interactions can include board membership or observation, project-based support, or longer-term support.
6. Investor Relations: Depending on where a fund is in its lifecycle, investor relations can incorporate fundraising activities, including fund marketing, potential LP communications, and investor reporting.

Think hard about how your experiences position you to execute against the responsibilities a given firm will expose you to. Alongside this, try to prove the reasons for your interest, which could include your network, understanding of ecosystem, love of early stage investing, passion for entrepreneurship, and desire to help founders.

Know The Technicals

Early stage investing is often not as technically oriented as its later stage cousins in growth, private equity, and public investing. Most businesses are at such an early stage that evaluations often are based on more qualitative criteria (e.g. team, market, product) than financial metrics.

Nevertheless, a keen understanding of business mechanics and the nuts-and-bolts of VC investing is typically entry stakes in your candidacy. Demonstrating poor comprehension of a market analysis, key metrics like LTV and CAC, or the investment process is a surefire way to kill momentum in your interview.

Know That You’ll Encounter the Unknown

Ultimately, the common thread in almost all VC interviews is a large dose of the unexpected. VCs want to see your analytical horsepower, depth and breadth of knowledge, ability to think on your feet, and willingness to hold a well thought-out opinion. Whether a robust set of take-home questions, an on-the-spot analysis request, or a unique permutation of the concepts we’ve outlined, there are countless ways to keep you on your toes and rigorously vet your interest and qualifications.

Go Deeper — Download the Guide

If you’ve prepped and robustly developed your core answers, you’ll be as ready as you can be for these aspects and curveballs. BeenThere’s Venture Capital Interview Guide aggregates over 50 real interview questions and potential strategies for responses to help you sharpen your skills.

We hope this article and our guide are useful resources in your career pursuits! If you’d like even more robust help, BeenThere’s mentors can provide personalized advice, strategy and tactics for your goals.

Many thanks to the multitude of BeenThere mentors and others in our VC network who provided feedback, including Cliff Nelson, Cara Morphew, Mattia Flabiano IV, Peter Teneriello, Shawn Xu, VC Starter Kit, Harry Stebbings and many more.

Check out more information in our interview with BeenThere mentor Mattia, who’s traversed PE, VC, growth and more!

Our guide is intended as a living document to provide the best possible help.If you have thoughts, feedback, or additional questions you think we should add, we’d love your input! Please shoot us a note at info@beenthere.biz.