It’s midway through 2025 and a lot has changed. Here’s an updated view from the perspective of a GP hiring at Betatron Venture Group where we happen to be hiring for the Analyst role.
The Analyst role is the entry point into the Venture Capital industry. Internships help, and can improve your chances of getting a full time offer, but I’m writing this for anyone who is thinking of making a career switch into VC without doing an internship.
Many VC Funds are Struggling
During the pandemic, many VCs poured billions into overpriced businesses with poorly validated use cases — from the Metaverse and NFTs to questionable DeFi projects and ICOs. As a result, many of these funds are now struggling to deliver returns, and several managers are unable to raise capital for their next fund. Here in Southeast Asia, where I’m based, the recent scandal at eFishery has further shaken investor confidence in the region. All of this has led to a tough job market for VC professionals right now, especially across Asia.
Some firms are hiring. You have to work to find them and then work to get noticed. Find people working at the firms you’re interested in and email them directly. If they have a Careers page, use that as well (but don’t use that alone).
Timing Matters
Consider where the VC firm is in its own funding lifecycle. Has it recently launched a new fund? Firms that have just raised capital are often more likely to have the bandwidth and resources to hire to help with the increased activity that comes with deploying new capital. Keep an eye on industry news and announcements that might signal a new fund launch.
The VC Landscape: Small Teams, High Impact
Within an already small industry that’s under pressure, the firms themselves are small. Venture capital firms, unlike large financial institutions, typically operate with tiny, close-knit teams. This means job openings are scarce.
It also means that every member, especially at the analyst level, plays a crucial role. You won’t be a cog in a machine; you’ll be contributing directly to investment decisions that shape the future of innovation. This also means that open positions are relatively scarce, making the application process highly competitive.
Do Your Homework: Know the Fund Inside and Out
Start with a deep-dive into the VC funds that pique your interest. You’ll want to understand their investment thesis. What sectors do they focus on? What stage of startups do they typically fund (seed, Series A, growth)? Scour their website, read their blog, listen to their podcast, and definitely pay attention to their recent investments.
The Case Study
Many VC firms will present you with a case study as part of the evaluation process. This could involve analyzing a specific company, evaluating a potential market, or even constructing an investment thesis. Here’s the key: go above and beyond. Mediocrity won’t cut it. This is where you pull out all the stops.
Within ethical and legal boundaries, be resourceful and relentless in your pursuit of information. There are no real rules in VC due diligence, so you should not be constrained to desktop research. Use AI to evaluate every company in the VC’s portfolio against the company in question. Call friends working in industries related to the case study. Build models that no one asked for.
The goal is to deliver a level of analysis and insight that far exceeds expectations. Show them you can not only answer the question but that you’re willing to go to extraordinary lengths to get it right.
Develop Your Investment Thesis: Strong Opinions, Lightly Held
VCs like people who have clearly formed, well-articulated, and informed opinions on industries and companies. If you’re asked, for example, for your thoughts on crypto, and you say you are a big believer, you should be able to identify use cases crypto is best for, why it matters, rates of growth for that use case, and counter any common counter arguments.
Be prepared to defend your views, but also be clear on what kind of new evidence could change your views. Remember the phrase “strong opinions, lightly held.”
Know What Works, and What Doesn’t
Have on hand at least one startup that you know intimately. This could be a company you worked for or one you closely follow.
Be prepared to discuss:
- What the company does well: Identify its strengths, competitive advantages, and key success factors.
- Where the company or its industry falls short: Analyze its weaknesses, challenges, and areas for improvement.
- Lessons learned: Articulate the broader implications of the company’s successes and failures for other startups and investors.
Focus on Their Problems, Not Yours
One hundred percent of how you sell yourself should focus on solving the VC fund’s problems. Most VCs have inboxes and piles of decks we struggle to get through. We need help hunting down deals. We need help following up with founders, with market research and thesis building. We need help interpreting and rebuilding financial models and doing all the work related to due diligence. Speak to those issues.
What does not help is to say, “I’m really passionate about startups,” or, “I really want to learn,” or “one day I want to run my own startup.” Everyone wants to learn. Passion for startups is a prerequisite for the job, not a differentiator. And if you want to be an entrepreneur, just hurry up and go do that.
Compensation Reality Check: It’s About the Long Game
Have realistic expectations about compensation.
- Base Salary Focus: Your base salary will be your primary source of income.
- Limited Bonuses: Don’t expect substantial annual bonuses, especially in the early years. VC funds primarily generate returns from successful exits, which can take time.
- Long-Term Incentives: Compensation structures can vary, and some firms may offer carried interest or other long-term incentives as you progress.
The focus at this stage should be on gaining experience, building your network, and proving your value.
Title Doesn’t Define You: Focus on Performance
VC titles can be less rigid than in traditional corporate settings. Don’t get too hung up on the specific title. What matters more is your performance and your ability to contribute to the firm’s success.
- Get Your Foot in the Door: The primary goal is to secure a position at a reputable firm.
- Performance Matters Most: If you consistently exceed expectations, the firm will want to keep you and advance your career. You’ll enjoy title changes, increased responsibility, and greater pay over time.
Create FOMO: Make Other VCs Want You
Just like startups, VCs think you’re special when other VCs show interest. While you should be committed to the firm you join, it’s also important to interview with multiple VCs. If other firms express interest in you, it adds some urgency to hiring you.
As a byproduct of being small team with lots of inbound requests, most VC funds are bad at responding to everyone. If you don’t hear back shortly (a week or two, max) after an interview, it’s safe to assume you’re not getting hired.
Landing a VC analyst role is challenging, but the job itself is one of the most intellectually rewarding ones in finance. It requires a combination of analytical prowess, vision, business acumen, a relentless work ethic, and a genuine passion for innovation.
Finally, stay positive despite inevitable rejections. You will be rejected many more times than you are accepted. If the fit is right, it will happen for you.
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