Venture capital in India has reached new heights in 2024, with ₹1,19,437 crore (US$13.7 billion) flowing through the economic system. This represents a 43% surge in funding, positioning India as the second-largest venture capital destination in Asia-Pacific. Deal activity has increased by 45%, creating both opportunities and barriers in equal measure.
For those wondering how to get into venture capital, the industry operates with its own unwritten rules and carefully guarded networks. The decisions made by a top venture capitalist in India in these exclusive circles ripple through industries, determining which ideas flourish and which fade away.
The question of gaining access to this influential space isn’t just about ambition but understanding the complex dynamics that separate insiders from observers. If you’re considering a startup investing career, this guide will help you move forward.
What Does a Venture Capitalist Actually Do?
Let’s clear something up first – a serial entrepreneur in Surat or overall India, like a VC, doesn’t just write cheques. They’re talent scouts, business advisors, and sometimes therapists for stressed founders.
Your typical VC workday involves:
- Hunting for promising startups (often evaluating 100+ deals to find one worth investing in)
- Performing due diligence
- Strategising with portfolio companies on growth, hiring, and scaling
- Networking endlessly to find the next big opportunity
If you want to enter the VC field, you need to understand how VC firms work. The VC hierarchy has its own language. Each role represents a different stage on the venture capital career path. All roles require judgment and people skills, though each has different responsibilities.
- Analysts: Entry-level professionals who screen potential investments and conduct initial research
- Associates: Mid-level professionals who source deals, conduct due diligence, and support portfolio companies
- Principals: Senior professionals who lead deals and may sit on portfolio company boards
- Partners: Decision-makers who approve investments and manage fund strategy
- General Partners: Owners of the firm who contribute personal capital and have final authority
What makes VCs valuable? They add value to the startup ecosystem by validating business models, reducing capital risks, accelerating growth through expertise, and creating bridges between startups and larger business networks.
Must Read: What happens if a Startup Fails?
The Typical Path to Becoming a Venture Capitalist
The traditional venture capital career path typically follows this progression, which is something everyone who’s researching how to get into venture capital should know.
Education → Relevant Experience → Advanced Degree → VC Position
Most successful VCs start with a strong educational foundation in business, finance, computer science, or engineering. While not mandatory, an MBA from a prestigious institution often serves as a significant advantage.
Entry into venture capital commonly comes through:
- Investment Banking: Provides essential financial modelling, valuation, and deal structuring skills
- Management Consulting: Builds strategic thinking and problem-solving capabilities
- Startup Experience: Offers hands-on knowledge of entrepreneurship and growth challenges
- Entrepreneurship: Successfully founding and scaling a company demonstrates practical business acumen
When considering VC as a career option, you must also learn about the differences between private equity vs venture capital. It’ll help you choose the right direction based on your interests and strengths.
What distinguishes successful VC candidates is their combination of analytical abilities, industry insight, pattern recognition, and relationship-building skills. The field values individuals who can identify promising ventures before they become obvious opportunities.
Steps to Become a Venture Capitalist
No shortcuts here – just practical steps to become a venture capitalist that do work. Consider this your VC career guide as we break the journey down.
Step 1: Build a Strong Academic Foundation
While there’s no “VC degree,” certain qualifications for venture capital are highly valued. Having a strong background in finance, economics, or business administration helps. IIMs, ISB, and top engineering colleges often serve as recruiting grounds for VC firms. Focus on developing analytical skills and understanding business fundamentals.
Step 2: Gain Experience in Startups or Finance
VCs value operational experience. Time spent at high-growth startups, investment banks, or consulting firms teaches you to evaluate business models and growth strategies. The closer you are to business-building, the better. This hands-on experience is important for breaking into venture capital.
Step 3: Start Angel Investing (if possible)
Nothing teaches venture capital skills like having skin in the game. If you can afford it, start making small investments in early-stage companies. Can’t swing it financially? Join angel networks like GSV as an analyst or advisor to get exposure that will benefit your venture capital career path.
Step 4: Network Within the VC Community
The VC community is tight-knit but increasingly accessible. Here are some quick VC networking tips to help you get started: (i) Attend startup events in Bangalore, Mumbai, Gujarat, or anywhere in India. (ii) Follow and engage with VCs, like Gaurav Singhvi, on LinkedIn and Twitter. (iii) Offer genuine value before asking for favours, and build relationships based on authentic shared interests.
Step 5: Join a VC Firm or Launch Your Own Fund
Learning how to work at a VC firm starts with understanding the entry points. Begin with venture capital analyst positions at established firms. Alternatively, consider roles at family offices or corporate venture arms, which often have less competitive recruiting. Exceptionally well-connected individuals might raise a micro-fund, though this path requires significant credibility.
On an Endnote
The journey to venture capital requires persistence, continuous learning, and relationship building. Begin today – expand your network, develop domain expertise in specific sectors, and build a personal track record of successful investments or startup advice.
The skills needed to become a venture capitalist extend beyond financial acumen to include empathy, vision, and judgment. Remember that in venture capital, your greatest asset is the unique perspective you bring to evaluating opportunities.
For guidance through India’s venture community, Gaurav Singhvi Ventures offers mentorship personalised to your unique journey. Connect with us to illuminate the path between who you are and who you might become.