Life as a New VC: What I Do and How I Made It

There is a notorious cliché in the venture capital community — “My path to VC was unconventional” — but, to be fair, it seems the sentiment rings true for many. One of the first things I realized after stepping into my current role at Grand Ventures was that my peers seemed to follow markedly different paths towards becoming investors themselves.

I dove headfirst into VC as a brand-new college grad in 2019. It was certainly a bit of a whirlwind. If you’d asked me just a couple years earlier what exactly a venture capitalist does, I probably wouldn’t have had the faintest idea. It took several chance encounters with entrepreneurs, successful startup teams, and investors during my college years before the light bulb went off and I realized that venture was something I wanted to pursue.

As I approach the 1-year mark into my time at Grand Ventures, I thought it would be a perfect time to consolidate some thoughts on my experience thus far. I get a lot of questions from current undergrads who are interested in my day-to-day responsibilities and tips on breaking into the industry. I’ll be the first to admit that I’m no expert on topics like how to craft the perfect resume or ace complicated finance interviews. I am, however, always more than happy to recount my own experience in hopes that I can help provide clarity about the industry to any VC hopefuls.

What I Do

The day-to-day of a venture analyst will inevitably vary between funds. New analysts might find that their responsibilities are almost exclusively confined to diligence and investment memo prep. Alternatively, they might focus more exclusively on attending events and sourcing deals.

I think joining my fund’s relatively small team of 5 has been incredibly beneficial for my own professional development. I feel fortunate to be involved with all the stages of the diligence process when we evaluate a prospective deal. I proactively source many of the deals we ultimately review, take introductory calls with CEOs, build investment memos, and am able to weigh in on our final decision in the later stages of diligence. I also support a lot of the fund’s operational initiatives, including our marketing strategy and event planning, among other things. My favorite part is that no day is like the one before — I’m always working on something new.

When I first began, I found the most challenging part of the job involved learning how to ask the right questions. As you might be able to imagine, it can feel a bit daunting to sit across the table from a seasoned startup team, interview them, and then convincingly provide an assessment of their business plan as a 22-year old with no prior entrepreneurial experience. Fortunately, as new VC, you’re likely surrounded by colleagues who can help you learn how to navigate. Plan to spend a lot of time shadowing the more experienced members of your team before you begin leading meetings independently — it’s the best way to figure out what your specific fund is looking for and the questions you need to ask in order to access that information. Take enough meetings, and it becomes second nature.

The most surprising part thus far? Just how wildly important your network is as a new VC. Fostering strong relationships with investors at other funds is likely the most critical thing you can do in your early career. It’s not always easy to find the best deals in the wild; they’re frequently shared privately between funds and friends. My primary advice to new analysts would be to attend every networking event you can, make a point of getting to know analysts/associates from other funds, and establish a regular touchpoint to begin exchanging deal flow.

How I Prepared

After spending some time completing internships in the startup world, I felt it would be helpful to gain some skills working alongside more established investors. I was hugely fortunate to intern with the team at Capital Innovators, one of the top-performing seed stage accelerators in the US. It was a fantastic jumping-off point to learn more about deal sourcing, evaluation, and the kinds of challenges that startups encounter in their earliest stages. I’d recommend a stint at an accelerator to anyone considering a role in VC. Gener8tor and Techstars have locations scattered all over the US, and both offer part-time associate programs that could be a great fit for any student.

Another perfect opportunity to learn more about the industry is the online Venture Deals class offered by Kauffman Fellows and Techstars every year. The free course covers all major aspects of the deal evaluation process. I participated as a senior in college, and I think it’s a great chance to work on some of the more technical finance skills you might need in your role.

What I Read

I’ll try to avoid spending too much time regurgitating the default recommendations like Venture Deals and Secrets of Sand Hill Road, but devoting some time to reading some of VC’s “classic” literature was definitely helpful for me in understanding a lot of the relevant terminology and procedures I encountered as a new investor.

There are two alternative resources I’ve found to be particularly useful now that I’ve settled into my role: email newsletters and the wonderful, occasionally entertaining world of VC Twitter. I’ve found both options are best for accessing quick, real-time updates on important deals and market trends that often affect the way I approach deal sourcing and evaluation.

There are quite a few VCs who regularly tweet insights on verticals and macro-economic trends of importance. Some of my favorite accounts include Seema Amble (@seema_amble), Anarghya Vardana (@anarghya503), Katherine Wu (@katherineykwu), Sarah Guo (@saranormous), and Elizabeth Yin (@dunkhippo33), among many others.

Newsletters are an easy way to get a daily recap of notable events in venture — I try to give a quick scan over Fortune’s Term Sheet, Axios Pro Rata, and the email blasts I get from Pitchbook and CB Insights on a daily basis. Not a bad idea to consider adding some newsletters that cover the news and economy from a wider lens (see: The Hustle, Bloomberg Briefs, Fast Company) to your rotation as well.

What’s Next?

Now nearly one year into my career, I’ve started to think more seriously about how I envision my future in VC. I feel incredibly proud of the work that Grand Ventures has done thus far to support startups in traditionally underserved markets, and I’m excited to continue backing companies in these markets going forward. I’ve narrowed in on the particular verticals that interest me most (AI, VR/AR, healthcare, deep tech, and GovTech) and am beginning to develop sector-specific expertise. I also feel strongly about the importance of investing in women, and I’ve started to focus actively on seeking out talented female founders for the fund to support.

I’ll conclude with a quick shoutout to my new Grand Ventures family, who have provided fantastic mentorship and an admirable level of support for my new ideas and occasionally loud opinions. 😊

Happy to continue the conversation — please feel free to reach out on Twitter (@kaylakav) or LinkedIn if you’d like to connect.