David Vivero

I had a delicious lunch at Francesca Cafe in the South End with Sam Clemens (no, not Mark Twain) from the word-of-mouth marketing company BzzAgent a couple days ago, and we discussed the widespread interest in venture capital as a post-MBA career move. Sam’s a Harvard MBA who worked at Greylock for a couple years after business school, so he gets a lot of calls and emails asking for advice on breaking into venture capital. Sam made two points that I thought were extremely insightful, and I’ll tack on one of my own.

First, he said, he thought those seeking venture capital gigs should ask themselves, “Would I want me (or someone like me) on my board?” It was an simple hypothetical that illustrated some of the qualifications for a good VC investor — a deep and authentic network, a sixth sense for pattern recognition, and some pretty good war stories to guide one’s own judgment and the decisions of portfolio CEOs. But mostly, it gets that point across in a way that sounds as intuitive as a “golden rule.” (Do unto others as you would have done unto you.)

Second, he said that the most glamorous time in a venture capitalist’s career is when s/he is a partner. You’ll be able to have influence on the partnership, and can make your own decisions. Even if there are two paths to get there — operating experience in entrepreneurial ventures, or a partner track role within a firm — the number of years required to get to that coveted spot aren’t all that different. Wouldn’t you rather take a chance as an entrepreneur now?

I’ll only add that I think personal brand is a huge factor in your success as a venture capitalist at any level. I’ve had the privilege of seeing a number of venture capitalists be introduced in meetings, introduce themselves to entrepreneurs, or be profiled in publications. In almost every case, there’s a mention of a venture capitalist’s life before venture capital. They founded a well-known brand, participated in the technical design of a recognizable disruptive technology, or they’ve enjoyed a string of successes as a general manager at a large and influential company.

Unlike public investing, where participation is less scarce but being smart about your moves is your asset, venture capital seems to be about having access to the best entrepreneurs and closing deals despite competition from other hungry firms. The firm’s reputation will take the partner only so far; after that, it will be about how the person within the firm sells himself as an ideal contributor to the startup’s vision. With only so many good deals to go around and a high probability that you are competing against other top funds to participate in them, the personal brand of the partners involved will be critical. If you can’t tell your career story in a way that entices an entrepreneur to partner with you, the individual, you’ll lose deals to the great storytellers down the road.