Finished your MBA? Ready to become a VC?
November 29, 2006
According to Guy Kawasaki you might want to reconsider that idea. He suggests:
Venture capital is something to do at the end of your career, not the beginning. It should be your last job, not your first.
My theory is that when you’re young, you should work eighty hours a week to create a product or service that changes the world. You should not sit in board meetings listening to an entrepreneur explaining why she missed her numbers while you read email on a Blackberry and intermittently spew forth gems like, “You should partner with MySpace; I can also introduce you to a few of the losers in our portfolio.”Furthermore, entrepreneurs should view any young person who opted for venture capital over “real world” experience with contempt. Why would you want advice from someone whose background consists of working in a college bookstore or cranking spreadsheets at an investment bank? Financial models are almost totally irrelevant because there’s no financial wizardry involved in making a good product and selling the heck out of it.
I have to agree with Guy. Think you have the right stuff to work in the venture capital business? Take Guy’s VCAT test here.
Here’s how to assess your readiness to become a venture capitalist:
- 40 or more points: Call CalPERS and tell them you’re raising a new fund.
- 35 to 39 points: Call Sequoia and Kleiner, Perkins and tell them that you’re available.
- 25 to 34 points: Send your resume to 2,000 venture capitalists and pray.
- 24 points or less: Work until you can score higher and keep flying on Southwest Airlines.
