1/7/23, 7:42 PM Top Venture Capital Interview Questions

TABLE OF CONTENTS
CAREERS CAREER ADVICE

Top Venture Capital Interview Questions

By DAVID KOCHANEK Updated October 15, 2022

Reviewed by EBONY HOWARD

Fact checked by VIKKI VELASQUEZ

Venture capital (VC) careers are competitive, with many more interested
candidates than open positions. You should only consider a venture capital job
after you have had many years of successful, relevant, hands-on experience.

Venture capitalist Guy Kawasaki put it best when he said that he imagines
saying the following to an entrepreneur across the table: "Why would you want
advice from someone whose background consists of working in a college
bookstore or cranking spreadsheets at an investment bank?" [1]

If you have the requisite background, preparing yourself for common questions
will help you shine in your venture capital job interview. Many of the questions
you can expect during a VC job interview are general in nature, but others are
unique to the venture capital industry. Below, we'll explore nine important
industry-specific questions and how you should answer them.

$548 billion
The amount of U.S. venture capital assets under management
(AUM) in 2020, a record year for the industry, according to the
National Venture Capital Association (NVCA). [2]

1. Why Do You Want a Job in Venture Capital? And, Specifically,

Why Did You Want a Job With Our Firm?
Before the interview, conduct extensive research on the firm to gain an intimate
knowledge of the company and the industry that will distinguish you from other
candidates. Your answer to this interview question should showcase this
knowledge along with your general enthusiasm for investing in young

[Link] 1/8
1/7/23, 7:42 PM Top Venture Capital Interview Questions

companies (but do not mention the significant compensation associated with

it).
TABLE OF CONTENTS
This is your opportunity to convey your passion for early-stage company
activities. If your answer focuses on a love of spreadsheets, you can forget
about getting to the next stage. Instead, think of what about seedling
companies gets you fired up. Project that energy and those points and you will
connect with the interviewer. In addition, point out how the particular firm
you're interviewing with fits into your desired career path and why your
background would be ideal for this firm.

2. What Are Some Recent Developments in Our Industry?

Venture capital firms seek employees with proven expertise, often in a
particular industry in which the firm focuses. You should not only showcase
your knowledge of the overall developments and trends in the industry, but
also elaborate on the specific influences currently affecting the market.
Demonstrate knowledge that only an experienced industry insider would have.
Discussing a particular company's product release or strategic decision would
be a great method to do exactly that.

3. What Has Been the Most Interesting IPO or Acquisition in Our

Industry in the Past Year?
This question provides ample opportunity for you to shine. Study the ins and
outs of an initial public offering (IPO) that relates to the venture capital firm's
niche interests and prepare your analysis. Discuss the potential you see for the
company and how it could strengthen its market position. Treat this question as

[Link] 2/8
1/7/23, 7:42 PM Top Venture Capital Interview Questions

a test of your industry knowledge and an opportunity to impress your

interviewer with thoughtful analysis.
TABLE OF CONTENTS
This research will also help you later when proving to clients you understand
their field and where they can go post-acquisition.

4. What Columns/Blogs Do You Read?

The venture capital world is a highly connected one where networking is
key, especially if you are trying to bring new deals to the table. Some prominent
venture capitalists publish personal blogs or columns highlighting their
perspectives on recent deals, upcoming IPOs, and general industry
commentary.

Reading such material can give you insight into the current thinking and new
developments in the industry. Staying in tune with such conversations shows
the interviewer that you are highly connected and have your finger on the
industry pulse.

5. Where Do You See Yourself in Five Years?

While this is a question that an interviewer in any industry would ask, at a
venture capital job interview, you should answer this question by stating your
intention to eventually become a general partner of the firm. You want to give
the impression that you are a dedicated individual who seeks long-term
commitments. Explain that you will earn your promotions by letting the results
of your work speak for themselves, and be ready to answer this follow-up
question: "What results can we expect from you?"

You can also use a professional success story to illustrate what you bring to the
table.

FAST FACT
There are approximately 1,965 venture capital firms in the United
States by the end of 2020, according to the National Venture Capital
Association (NVCA). [2]

6. How Would You Evaluate a Possible Portfolio Company and

Its Business Plan?
[Link] 3/8
1/7/23, 7:42 PM Top Venture Capital Interview Questions

Emphasize your ability to look beyond the numbers and read between the lines.
Evaluating financial facts is much different than forecasting revenue potential.
TABLEIn
OFanCONTENTS
early-stage investment, two things will make the difference between
success and failure: seasoned management and sales potential. Understanding
how to effectively evaluate the leadership of the company and the reality of its
market demand is crucial. The key to any venture capital investment is the
prospects of the market.

This understanding should be central to your response. Tailor your answer to

showcase how your experience and successes have developed your ability to
project demand and forecast sales. If you have accomplishments where you
developed a nascent concept into a market success, make sure to discuss how
those experiences lend well to a venture capital career.

7. Tell Me About Your Most Challenging Professional

Experience.
This is a great opportunity to make a lasting impression—take advantage of it.
Choose an experience from your resume that showcases exactly how your skills
would help you overcome the obstacles and challenges that arise in a venture
capital career.

If you were involved with a startup organization that floundered, use that
experience to showcase how your leadership turned the situation around, or
explain the lessons you learned from that experience. (Remember, we tend to
learn more from our mistakes than from our successes.) Discuss how your
company released a product or service that did not perform well in initial
market testing and how you used that information to create alternative uses or
features that drove an eventual success.

8. What Industries Are of Greatest Interest to You?

Venture capital firms tend to be highly specialized, and your answer must
reflect that specialization. One way to distinguish yourself is to propose
complementary niches to the firm. The company may disagree with your
suggestions, but if you can provide compelling reasons for your proposals, you
will have demonstrated industry insight and creativity that will go a long way
toward impressing your interviewer.

9. What Have You Personally Invested In?

[Link] 4/8
1/7/23, 7:42 PM Top Venture Capital Interview Questions

A venture capitalist makes a living putting their money where their mouth is, so
the interviewer will expect that you should, too. Taking calculated risks for the
TABLEpotential long-term reward is an important characteristic to demonstrate. Show
OF CONTENTS
that your brokerage account shines with holdings in the industry's best and
brightest companies, and that you placed them into your stock portfolio long
before the general investing public got caught up in the hype. The venture
capital industry is focused on startups and adding value to early-stage
development companies, so give special emphasis to your investments in
companies related to the particular specialties of the firm you are interviewing
with.

Important: Many of the questions asked at a venture capital

interview are similar to questions an applicant would be asked at an
interview in any field, such as: where do you see yourself in five
years? Others are more specific, such as: what have you personally
invested in?

The Parting Shot

The end of the interview represents the final opportunity to differentiate
yourself from the competition. Focus on asking questions about the current
activities of the firm not previously brought up in the interview process.
Demonstrate your understanding of the firm's specialties and be sure to ask
what they are looking for in a candidate and how well you measure up to that
standard. This is known as "closing the deal," and you should never leave an
interview without a strong close.

If you've landed a venture capital job interview, being prepared for these
questions should put you on solid ground. Do your homework, and you'll be
one step closer to the offer you're looking for.
Open A Trading Account in Under 5 Minutes SPONSORED

Open a trading account in under 5 minutes and join 900,000 others globally
trading long or shot on US, AU, UK and EU Share CFDs, and access 1000+ other
CFD products over assets like indices, gold, and forex with an award-winning
broker. Trade from $6 commission a side, and access free education and trading
tools with 24/5 phone support. Learn more about trading with Vantage and get
started today.

[Link] 5/8