Venture Capital Internships: A Thorough Guide for Canadian University Students

Venture capital, an amalgamation of finance and technology, stands as one of the most cutthroat industries. Simultaneously, it remains shrouded in mystery and poses significant accessibility challenges for students seeking internship opportunities. This guide aims to demystify venture capital and offer a step-by-step methodology for students eager to explore roles within this dynamic sector.

Venture capital is often perceived as a black box by students, presenting a significant barrier to entry. This guide endeavors to bridge the knowledge gap, providing valuable insights and preparing aspiring individuals for the venture capital recruitment process.

Step 1: Understanding the Venture Capital Industry

The venture capital landscape is diverse, with firms engaging in various types of investments. Understanding these nuances is crucial before embarking on the application process:

1. Seed-stage VCs: Specialize in offering initial funding to startups in their conceptual or prototype stage, assisting entrepreneurs in initiating ventures and establishing a solid foundation for future development.
2. Early-stage VCs: Invest in startups with a viable product and demonstrated market traction, focusing on companies with the potential for scalability and market leadership.
3. Growth-stage VCs: Target more mature startups with substantial revenue and user growth, aiming to support their expansion and positioning as industry leaders, often leading to exit events like IPOs or acquisitions.
4. Corporate Venture Capital (CVC): Involves large corporations investing in startups and innovative companies to gain strategic value by accessing new technologies, markets, or products that complement the corporation’s existing business.

Step 2: Developing Awareness of Venture Capital Firms

The initial step in securing a venture capital internship involves identifying the right firms to apply to. Unlike investment banks or conglomerates, venture capitalists are not actively engaged in on-campus events, necessitating independent research:

• Create a comprehensive list: Develop a spreadsheet of venture capital-involved companies, focusing on Canadian firms and US entities with a history of hiring Canadian students.
• Utilize strategic tricks: Look for new VC fundraising announcements on LinkedIn, gauging engagement to identify potential players. This close-knit community often shares announcements, creating opportunities for interaction.
• Evaluate companies: Choose 15–20 companies aligning with your values and mission. Platforms like Crunchbase can unveil investing firms with similar beliefs, setting the stage for cultural alignment.
• Explore fund of funds: Identify fund of funds for venture capital firms, such as iNovia’s Emerging Managers Fund and Intact Ventures Fund Investments, to expand your list of potential contacts.
• Engage in student-run initiatives: Participate in student-run venture organizations and fellowships, transcending the exposure gained from entrepreneurship or startup clubs. Examples include FrontRow Ventures, Contrary Capital, RippleX, Bessemer Fellowship, and university-specific clubs like Ivey Venture Capital Club.

Step 3: Strategic Cold Emailing for Introductory Calls

Given the limited visibility of venture capital internship opportunities, relying solely on posted openings is insufficient. Establishing a presence in the minds of recruiters through strategic cold emailing is crucial:

• Identify platforms: Reach out to venture capitalists on platforms like Twitter, LinkedIn, or Email, prioritizing individuals with connections to your school or shared experiences.
• Craft compelling messages: Craft concise and personalized cold outreach messages, introducing yourself, expressing interest in the recipient’s experiences, and proposing a 20-minute call. Personalize your emails by mentioning specific achievements or connections.

Step 4: Preparation for Introductory Chats

Introductory calls with venture capitalists are characterized by brevity and frequency. Adequate preparation is key to making a lasting impression:

Ask Insightful Questions

• Prioritize unique inquiries: Questions should go beyond publicly available information, focusing on investment strategy, specific deals, culture, and personal opinions.
• Research fund strategy: Gather background information on the fund’s verticals, investment stages, involvement in deals, fundraising history, and reputation for operational involvement with portfolio companies.

Communicate Your Interest

• Express genuine interest: Communicate your interest in working with the firm during the latter part of the chat. Gauge the fund’s history of hiring students and inquire about their recruiting timeline and advice.

Step 5: Preparing for the Interview

Interview styles for venture capital internships vary widely, ranging from case studies to behavioral interviews, investment memos, or deal pitches. Despite the lack of consensus, differentiation is crucial:

• Showcase key characteristics: VCs look for a self-starter mentality, strong opinions, and coachability. Develop rehearsed examples highlighting these attributes from your extracurriculars and relevant experiences.
• Research startups: Familiarize yourself with startups aligning with the fund’s investment criteria and form opinions on their viability. The ability to articulate investment decisions with logical reasoning is crucial.
• Highlight people skills: Given the people-oriented nature of VC, emphasize your ability to work with partners and founders, showcasing coachability, curiosity, and active listening skills.

Bonus Point: Leveraging Warm Intros and Online Presence

• Utilize warm introductions: Leverage warm introductions facilitated by credible individuals within the VC community. Seek recommendations from peers or former interns to connect with desired VC funds, adding credibility to your outreach.
• Build an online presence: Establish an online presence through thought pieces, blogs, or tweets showcasing your interest in venture capital and startups. Ensure your social profiles are connected with prominent investors, providing a positive signal to venture capital firms regarding your compatibility and capabilities.

Conclusion

Breaking into the competitive realm of venture capital necessitates strategic planning, research, and effective communication. By understanding the nuances of the industry, identifying potential firms, mastering the art of cold emailing, excelling in introductory chats, and preparing for diverse interview formats, aspiring students can navigate the intricate path toward a venture capital internship. Leveraging warm introductions and cultivating an online presence further accelerates this journey, offering a holistic approach to securing coveted positions in this dynamic field.