As an educator in the VC space, I’m regularly asked, “Do I have to be an investor to work in VC?” It’s a perfectly reasonable question, and one that highlights something that’s so often overlooked and misunderstood – breaking into VC doesn’t have to mean becoming an investor.
From firm operations to roles across talent, marketing, and community, there are many paths into this vibrant industry, and significant room to build a career that suits each person’s unique skills and experience.
As somebody who came into this space having worked in management consulting, education and the non-profit sector, I can testify that there’s no one-size-fits-all approach to building a career in VC. So, writing from experience, here are three paths into VC without becoming an investor.
1. Operator: The backbone of the firm
If you don’t want to invest directly, many other positions within VC firms are just as crucial to ensuring the firm achieves its overall goals. One way to get a foot in the door is to look for operating roles: internal positions which support the daily functioning of the firm as a whole. From ensuring the firm meets its legal and regulatory obligations to building in-house tech tools and, of course, financial management, there are a whole host of mission-critical jobs open to those who want to be enablers within VC firms, instead of investors.
Tip: Scope out titles such as Legal and Compliance Associate, Finance Associate or Operations Associate.
2. Platform & portfolio: Scaling startups and ecosystems
VC firms’ engagement with portfolio companies (portcos) doesn’t end at the point of investment. Once a firm has decided to back a new startup, it often takes on the responsibility of mentoring its founders, supporting with talent acquisition or helping with marketing and PR work. Essentially, anything that could help scale the business and increase its value as an investment. For this to be a success, VCs need a team of people who can support this work. This is often referred to as portfolio support.
Very related, and sometimes used interchangeably with portfolio support, is the “platform role”. This tends to include the extra element of building an engaged ecosystem around the firm. This includes broadening the firm’s network and presence, running events and nurturing the firm’s community of stakeholders. Platform roles represent the “service arm” of a VC firm, designed to differentiate the firm beyond just writing checks. This could include anything from hosting meetups of key industry stakeholders to producing engaging media and thought leadership content.
Tip: Check out roles such as Platform Associate, Community Manager or Events & Ecosystem Coordinator.
3. Startup advisor: Guiding founders to capital
If none of these ‘in-house’ positions seems to be the right fit, you might want to consider working more directly with startups. When trying to attract funding, startups often seek third-party support to help them make connections, refine their product offering or develop a more compelling pitch for investors.
Working for a startup accelerator/incubator can be a great way to get involved in this space. While you might not be working for a VC firm, you’ll collaborate closely with those that do, and your day-to-day activity will often be focused on helping teams secure capital. For those who have already built up a solid base of knowledge and experience in a particular industry, there are also sector-specific advisory roles which might be a good fit.
Tip: Look for titles like Technical Advisor, Startup Coach, or Innovation Consultant if you’re interested in this kind of work.
Final thoughts: Build fluency in how the ecosystem works
As with any career change, one of the best ways to determine where you might fit into a new ecosystem is by understanding the ecosystem itself. In VC, everything revolves around the founder, sourcing the best deals, and securing financial returns. Each role within a VC firm contributes to making that happen. Whatever position you ultimately aim for, you’ll need a working knowledge of the wider ecosystem’s rhythms as well as a clear understanding of the key factors that drive decisions and motivate people in the industry. This isn’t just about knowing what a ‘unicorn’ is or understanding ‘term sheets, ’ it’s about grasping the realities of a VC firm’s day-to-day operations and seeing how the moving parts fit together.
If this is new territory for you, there is no single starting point. By developing a deeper understanding of how the venture capital industry works, you’ll be better placed to think strategically about which roles best align with your skills and interests. Chances are, there is a VC firm looking for exactly the experience you bring.