WHERE VENTURE CAPITAL FIRMS ARE DEVELOPING THEIR TEAMS

HUGH BARRAN, VENTURE CAPITAL, ARMSTRONG INTERNATIONAL

This year has so far been somewhat surprising on the VC hiring front, with many funds still looking to add investors to their team. The background of these funds are robust platforms, pre-seed to seed as their primary investment strategy with a good history of exits. Growth funds have been much quieter but the nature of seed investing is to our minds “market neutral”. If only 19% of companies get to Series A in Europe as the statistics suggest, then the low probability of a seed-stage company becoming successful means that regardless of what is happening in the public markets, VCs must continue to invest.

The tougher environment will ensure that only the truly phenomenal founders survive. We should expect to see some of the most exciting companies for the next decade and beyond being created during this time.

After speaking to one Head of Talent at a top-tier multi-billion dollar VC a couple of weeks back, she mentioned that in her four years with the firm they have never stopped hiring associates. Associate hiring will never slow down, for the good ones are too hard to come by. When they do get hired by top-tier funds, they then raise the bar for the next batch to come on board. What we are seeing now is more of a focus at the associate level on the need for a computer science or technology-focused background. Being a superstar consultant or investment banker will hold you in great stead but if you can marry an