PS#074: VC Internships – Eyes Wide Open
I’m all about tactical advice.
So, today, we’re going to take lessons from the series on how to choose a VC firm and apply it to choosing an internship. For most aspiring investors, an internship will be your first step to breaking into this industry.
And, that’s just it – it’s your first step.
More often than not, that first internship doesn’t lead to a full-time role. To be clear, it certainly can, but, from what I’ve seen, this is less likely to be the case for most aspiring investors.
With that in mind, how should we think about the internship?
Today, we’ll walk through this in detail, discussing the…
Purpose of an internship (from your perspective)
Traps and common misconceptions
Taking ownership
Alright, let’s dive in.
Purpose of an internship (from your perspective).
For a firm, an internship is a chance for them to see how you would perform on the job in a low risk environment. There may or may not be a full-time role available on the other side.
With that context, we want to make sure we use the internship to our advantage, whether we are going to work there long-term or need to find another role.
So, how should we think about an internship from the perspective of an aspiring investor?
In my mind, there are 3 ways to leverage this experience…
Learning & development
Relationships & networking
Practice, practice, & more practice
Let’s discuss each in more detail…
1. Learning & development.
First and foremost, this is a chance to learn.
A chance to learn (in real life scenarios) how the game of venture capital is played.
While this may sound obvious, I’ve seen a lot of interns seemingly miss this aspect. Yes, you will be assigned work and there will be certain tasks that need to be completed.
But remember, you also have unfettered access to a venture capital firm, including its portfolio, historical deals, investor experiences, etc.
Take advantage of it. Be a sponge. Dig through old deals and old files. Spend time learning about as much of this as possible. Focus on developing the full skill set and becoming a full-stack investor.
2. Relationships & networking.
Networking is hard.
It’s hard to continually provide value to others. It takes a lot of work. That’s just a fact of the matter. However, when you’ve secured an internship at a VC firm (when you get that email address), you’ve made it just a bit easier on yourself.
By securing that email address, you’ve signaled to the industry that you are tied to capital and the firm’s decision-making process, which is true (to some extent). Other investors and entrepreneurs will assume that you’re at the very least tied to capital, although maybe not the decision-making process (just yet). This will add credibility to your work, outreach, and conversations.
Take advantage of it. Meet as many people as possible. Connect with as many investors and entrepreneurs as you can. Who knows, you might even find your long-term firm through one of those investor connections.
3. Practice, practice, & more practice.
Most internships are only a few months. That’s not a lot of time. If you come in without a plan or an understanding of how this works, it’s even less time.
Make sure you’re spending that time wisely, practicing the skills that are more difficult to practice when you’re not working at a VC firm. This may include conversations with founders, diligence processes, observing portfolio management, etc.
If you’re intentional about what you’re here to learn and practice those skills, this can accelerate your efforts to make venture capital a long-term career.
Traps & common misconceptions.
OK, the three points above are your “north stars” so to speak. Build your experience and time in an internship to feed those three components.
Conversely, I always like to point out the “traps” that can get us in trouble.
Let’s point out a few things to be wary of in your internship experience…
It won’t teach you everything
It’s easy to waste time being “busy”
Your development is your responsibility
Let’s discuss each of these a bit more.
1. It won’t teach you everything.
As I pointed out in the last few issues, each role has its drawbacks. Each type of firm, role, and experience will teach you pieces of the puzzle, but not the whole thing.
Go in “eyes wide open” about what you’re able to learn in this role (and in the given time frame) vs. what you might not have an opportunity to learn.
2. It’s easy to waste time being “busy.”
Be careful. You can easily squander your time in venture capital, especially in an internship capacity. It’s really easy to be distracted by all sorts of “shiny objects” and less than useful activities.
Focus on those goals above and be intentional about your time.
3. Your development is your responsibility.
If you’ve come to venture capital looking for mentors or teachers, I’m sorry to disappoint you, but this is not the industry's forte. While collaborative (and even an apprenticeship-type profession), venture capital is (more often than not) an individual sport.
You need to make sure that you’re learning the skills that you need to succeed. You need to be the one who is driving your own learning and development. If the firm or role isn’t teaching you all the skills, it’s your responsibility to find out how you can learn the other aspects of the job.
If you don’t, no one else is going to do it for you.
Taking ownership.
The last point in particular is something I’ve thought a lot about over the course of my career.
It’s been disappointing at times to see the lack of mentorship in this industry. Of course, with that disappointment, I’ve found the inspiration to build Sand Hill Prep and Preferred Shares.
While a drop in the bucket, I’ll call it a step in the right direction.
However, more than anything else, I think it presents an opportunity.
I believe those of you who are intentional with your time, focused on building the full skill set, do the job in advance, and take ownership over your own development… I honestly believe you will be successful.
That’s my belief.
So, over the next few issues, I’m going to discuss another way I think about learning and development. I’ll share the four foundational skills of my career as well as my three operating principles.
If you’ve been following my work, you’ll see a lot of these concepts weaved throughout.
But, it’s time I put pen to paper.
Alright, that’s everything for now. Have a great weekend.
