Guy Kawasaki writes a good post about VCAT (venture capital apptitude test). In the early 90s I was in graduate school aka: b-school or MBA (note: Babson College had the #1 program in entrepreneurship). It’s very easy to be attracted to venture capital if you are an entrepreneur. I wanted to be a VC. In reality I was just attracted to doing startups. Thanks god I didn’t become a VC. Guy is right be a VC later in your career if you’re an entrepreneur.
Here is the real deal in my opinion. If your attracted to the vc business because you want to get into the “action” and make money then don’t be a vc be an entrepreneur. If you want to be in the vc business because you like entrepreneurship but don’t want to take the risk then don’t be a vc. Actually if your coming out of b-school do something entrepreneurial then be a vc associate or analyst. If you want to be a VC be an entrepreneur first.
How do you know who the best VCs are:
In all of my interactions with VCs the best VCs are the ones that have unique skills that can’t be taught in b-school – Instincts. Just look at all the mega deals and their exits then trace the guys involved in the beginning. It’s clear that the best have good instincts on people, markets, and technology. When I meet a vc and hear “business model, differentiation, sustainable competitive advantage, bla bla,,” my eyes roll. When I meet a vc and here “how are you going to take down that market, crush anyone in your way, land the big customers, hire: mr big engineer, mr big sales guy, mr big marketing gal,…” then I get excited and I know that I am talking to the right VC.