Editorial Note: Opinions and thoughts are the author’s own and not those of AFROTECH™.

Venture capital has transformed over the last 15 years from a little-known industry to one of the most sought-after fields, thanks to the rise of iconic tech companies and the media spotlight on their stories. Movies, television, and digital media have brought the narratives of this once-obscure sector to screens worldwide. The first major story to captivate global attention was “The Social Network” in 2010, chronicling Mark Zuckerberg’s journey from founding Facebook (now Meta) in his Harvard dorm room to building one of the world’s largest companies, with a market cap of $1.5 trillion.

The allure of startups also made its way to the small screen with the hit HBO series “Silicon Valley”. Over six seasons, the show followed Richard Hendricks and his fictional startup, Pied Piper, portraying the highs and lows of launching, scaling, and exiting a startup. Each week, viewers gained insights into how companies like Apple, Google, and Facebook scaled through the backing of private investors known as venture capitalists.

Media coverage of figures like Sam Bankman-Fried, the former CEO of FTX, has further fueled curiosity about the venture capital world. Bankman-Fried, whose firm collapsed in 2022, is now serving 25 years in prison, and his story has spotlighted the question: Who funds the founders behind these companies?

Venture capital is now undergoing a transformation. The era of back-to-back funding rounds and sky-high valuations disconnected from realistic growth projections is fading. Seasoned investors are either launching their own funds or exiting the industry altogether, reshaping the ecosystem. These changes present opportunities for newcomers to enter the field or explore private market investing.

In this piece, I’ll explore the typical paths to working on the investing side of venture capital, how opportunities are often uncovered, and programs to consider if you’re looking to one day become an investor.

Breaking Into Venture Capital

There’s no single blueprint for becoming a venture capitalist, but certain career paths are more common when seeking roles like associate, senior associate, or principal at a VC firm. Backgrounds often vary based on the investment stage of the firm.

Pre-seed and seed-stage funds tend to attract individuals with diverse professional experiences. Common profiles include those with backgrounds in management consulting at firms like Bain, McKinsey, and BCG, or visible roles in hyper-growth startups like Stripe, OpenAI, or Anthropic, particularly in product, engineering, or design.

At later stages, such as Series A and beyond, the focus shifts from teams and products to financials. Firms in these stages often seek candidates with deep financial expertise, as the diligence process becomes more numbers-driven.

Specific skill sets and networks are highly valued in venture capital. Managing partners who oversee hiring often prioritize candidates with experience in areas that align with their firm’s investments strategies. For instance, someone with a background in engineering or product management may be seen as well-equipped to evaluate early-stage opportunities and provide value to portfolio companies. While exceptions exist, those without these traditional backgrounds are more likely to be firm founders than employees.

The Importance Of Networking

The phrase “your network is your net worth” holds particularly true in venture capital. Roles in this field are rarely posted online and are often filled through connections, especially in tech and finance hubs like California and New York. According to Carta, a firm that helps venture-backed founders manage investor documents, venture capital activity is significantly more concentrated in these two states than elsewhere in the U.S.

One under-discussed entry point into venture capital is joining scout programs.

Scout Programs As A Gateway

The first scout program was created by Sequoia Capital, leveraging founders they backed to identify potential investment opportunities. Over time, Sequoia expanded the program, allowing scouts to write checks on behalf of the firm. As a participant in scout programs myself, I’ve found the benefits go beyond building a track record as an investor. These programs help expand your network by connecting you with accomplished professionals across various tech sectors.

If you’re considering a scout program, I recommend exploring opportunities with Westbound Equity Partners and Zeal Capital Partners, which aim to create more Black check writers.

One aspect I enjoyed most about being a scout was drafting deal memos to submit to the firms I partnered with. This process provides invaluable clarity about the opportunities you’re evaluating and sharpens your thinking as an investor.

Building Your Track Record

Whether you aim to join a venture capital firm or participate in a scout program, the key to breaking into the industry is building a track record. By doing so, you not only demonstrate your ability to identify promising investments but also position yourself as a credible and capable investor in the highly competitive world of venture capital.