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One of the most frequent questions we get as career experts is how to become a venture capitalist. This profession has attracted a lot of interest in the recent days due to the good job prospects and huge earning potential associated with it. There are so many things to sift through and a lot of factors to consider if you want to become a venture capital investor. This post has rounded up all the things you need to do.
Understand Your Job
Those who want to become venture capitalists must have a clear conception of what the job requires. As a venture capitalist, you will be required to create or solicit investment opportunities in the industry within which you want to invest. You will have to evaluate different companies to determine whether to invest in them or not. You will also have to negotiate terms of investments, liquidate investments and help build successful business ventures.
Get the Right Education
You need to have at least a Master’s of Business Administration (MBA) degree to qualify for a position as a venture capitalist. An MBA equips you with the skills and knowledge to establish your own company or go through financial apprenticeship from a reputable venture capital firm. The MBA will also equip you with solid analytical skills to research markets and identify business opportunities.
In order to gain entry into an MBA program, you must have at least a bachelor’s degree certificate issued by an institution accredited in the US. You must have a minimum of two years of post-undergraduate work experience, two letters of professional recommendation, resume and personal statement. MBA programs take between two to three years to complete.
Be Active in the Business Community
You need to be an active member of the entrepreneurial community in order to expand your opportunities. Start your own firm, join a rapidly growing startup company and write for major business publications. Your main objective here should be to become a connector and also get connected. You need to do this as early as you leave college.
Create a Social Profile
You need to create and build up a good social profile. This is very important if you want to work with venture capital companies who focus on consumer applications. Create a profile that defines what you believe in as well as your skills set and areas of practice. This will improve your chances of landing lucrative deals. It will also help you demonstrate that you have a deeper understanding of what works and what doesn’t in the consumer application ecosystem.
Garner Some Work Experience
You need a considerable level of work experience to get a job as a venture capitalist and increase your chances of qualifying for advanced positions. Have at least three years of experience working for a reputable firm in investment banking, technology, media or consulting.
Acquire Essential Skills
As a venture capitalist you must be good at structuring and closing deals, according to the Business Insider. You must acquire strong analytical skills to enable you to understand and predict investment opportunities. Other essential attributes include great business acumen, good communication skills and desirable interpersonal behaviors.
Related Resource: What Finance Jobs are in Investment Banking?
Becoming a professional in venture capital doesn’t have to be so difficult like most people think. All you need to become a venture capitalist is an MBA from an accredited institution, desirable social profile, deep understanding of your roles and the right skills set.
