PS#013: How to Create Your Own VC Internship

If you’re not getting a chance, make one.

I often talk about the switch I needed to make in order to secure a seat in the world of venture.

I had to start doing the job.

Well, while we’re at it, we don’t have to wait for firm’s to offer internship opportunities.

We can create our own.

Today, I am going to walk through how to create your own VC internship.

The goal of any VC internship is to get a seat at the table.

That’s it. Get a spot.

Just like any other internship, at the end of the day, it’s just a trial run. A proof of concept. A chance for the employer and the employee to see if this is a good fit.

Unfortunately, the venture world is generally behind the curve when it comes to the latest hiring practices. But, that just creates another opportunity for those who are willing to do it themselves.

So what does a “seat at the table” mean?

In VC, the main difference between those with a seat and those without one is being tied to capital.

When you are tied to capital, it’s a much more productive conversation for entrepreneurs (without even counting any additional value the firm or individual can provide).

For aspiring investors, this means securing an email address or some other qualification that shows you can provide access to capital and the corresponding decision-makers.

It’s about tying yourself to a venture firm in some way, whether that’s as a scout, intern, or some other role. It doesn’t really matter, just get a seat.

Build the relationship, secure the email.

If you’re looking to create your own internship, you need to first build the relationship.

If you don’t already have relationships in the venture world, take a look at some of my previous issues to learn more about building these relationships from a cold start.

Once you’ve built a relationship and a rapport with a firm or specific investor, you can offer your services in the form of an internship.

Truthfully, the title of it all doesn’t really matter (i.e., intern, scout, fellow, etc.), it’s just about getting into the game. From there, you can continue to climb the ladder.

So how do you design an internship?

We’ll use the following framework…

1. Offer

2. Logistics

3. Outcomes

Let’s dive in.

Create an attractive offer for the firm.

Maybe this is obvious, but you want to propose a structure that is an “easy yes” for the investor or the venture capital firm.

To do so, start with your goals for the internship. This should cover five key components…

1. [X] number of leads

2. [X] number of first calls (or qualified leads)

3. [X] investment theses (or other content)

4. Reviewing inbound leads

5. Support on diligence efforts

Leads, first calls, and investment theses

The number of leads, first calls, and investment theses (or other content) will depend on how much time you have to dedicate to the internship.

In a given year, a firm would likely expect a full-time analyst or associate to generate 150-200 first calls, which equates to about 3-4 a week (not including calls coming in from other channels). Assuming you have a 30-40% conversion rate, that would mean you’re creating about 500 (+/-) leads in a given year.

You can take these amounts and pro rate them across the length of your internship.

For the investment theses (or other content), this again will depend on the time that you have to dedicate to the internship. My recommendation would build one main thesis that could create 1-3 investments for the firm.

Theoretically, it should help generate those leads and first calls.

Reviewing inbound leads

VC firms will often receive a lot of inbound investment opportunities, especially if they have a strong brand in the market.

A lot of firms will have an email listed on their website that captures inbound interest from founders. There is typically a lot of volume, but lower quality.

This can be a great place for you to offer your services. You’ll gain access to more deals and help investors triage all of the opportunities they’ve received.

Supporting on diligence efforts

You’ll need to earn this one, but it’s always good to offer.

Early on, there’s probably only so much you can actually do to support.

A couple of quick ideas:

• Build a network of experts, customers, etc. in relevant spaces

• Offer to take notes and organize incoming information

• Learn some of the more tactical components of diligence

For that last one, check out my course How to be a VC Associate.

I built it for exactly this reason.

Define the logistics of the internship.

Alright, we’ve put our offer on the table, but how will all this work?

The beauty of these early venture roles is that they can be pretty autonomous. With that being said, we do want to outline a basic operating framework for the relationship.

This should include the following…

• Title

• Email

• Hours

• Payment

• Deliverables

• Communication

Title

As I mentioned previously, I don’t think title matters too much as you try to break into the industry. It’s more about the work you do.

Feel free to use scout, intern, fellow, investor, etc. Just use something that the venture firm is comfortable with.

Email

Make sure you’re able to secure an email address with the firm.

This along with that Linkedin update (woot!) will provide the credentials you need to get started.

Hours

Most venture firms are looking for interns that can provide somewhere between 10-40 hours a week of support. This depends on the firm and what you’re willing to do.

In all honesty, if you really want to pursue VC, these hours are more superficial.

When I was interning in VC, I didn’t care about the hours I worked. I wanted to be a venture capitalist and so I spent all the time I could working on my craft.

It’s up to you.

Just recognize there are a lot of people competing for these opportunities.

Payment

This can be tricky.

If you’re comfortable with it, I encourage you to push for the internship to be paid. But, remember, the real value is in getting a seat at the table.

I’ve seen internships with hourly rates anywhere from $15-40 per hour. It depends on the fund, location, your experience, and many more factors. This is a great resource on internship compensation to help you think through negotiating your offer.

Deliverables

I recommend turning all of your work into something tangible.

A couple of ideas below…

• Create weekly update reports on the leads and first calls you’ve generated.

• Provide organized notes and reviews of specific companies.

• Updates on your investment thesis or content.

• Final report summarizing your work.

At the end of the day, this is what you will use to make the argument that you deserve a full-time role in VC at their firm. And, if not for their firm, then maybe another one.

Communication

Finally, communication.

You want to set up some form of communication or regular touchpoint. As I mentioned, this role can be pretty autonomous, but you’d like to make sure you’re engaging with the team.

I recommend, at the very least, scheduling a weekly call to check in with and provide updates to the investor you’re working with at the firm.

In the ideal scenario, you should try and be a part of meetings at the firm (i.e., partnership meetings, deal discussions, diligence sessions, first calls, etc.)

This will be immensely helpful and probably more valuable to you at the end of the day. Offer to be the one who takes notes and captures action items to make that “yes” a bit easier.

You get out what you put in.

There it is – how to create your own internship.

You don’t need to wait for these firms to offer an internship and create a competitive process.

Beat them to the punch.

Now, just one quick reminder before we wrap…

You get out what you put in.

I’ve seen interns rise to the occasion and secure a full-time position at VC firms and I’ve watched others squander their opportunity.

When you get your chance, be ready. Give it all you’ve got.