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There is, among VCs — and among women VCs in particular — a feeling that the ‘path to partner’ is not a clear one, nor an easy one.
Most firms are small and only have so many seats for partners. Most who hold those roles are in it for the long term — and so it’s rare that a spot opens up.
This lack of predictable progression often leaves junior investors frustrated, and wondering if they need to jump ship to get the partner title.
The answer, according to new data from executive search firm Erevena, is yes: they probably do need to move to make it up the ranks.
Maddy Cross, partner at Erevena, looked at the career paths of 220 women VC partners in Europe, based on LinkedIn data.
She found that 58% of them had — immediately prior to joining their firm as partner — worked in venture, at a fund or an accelerator. 15% had worked at a startup or scaleup, while 10% had been at a corporate. Less than a quarter — 23% — of partners had MBAs, and only 14% had founded a tech startup.
“One thing that I’m really happy to see in the data is that there isn’t ‘one path’ into VC leadership for women; female investors who have an aspiration to be a partner don’t need to do an MBA, found a business or have a STEM degree but they can, of course, do these things if they want to,” says Cross.
However, 40% of the women in Cross’ data set were founding partners — i.e. had become partners by taking matters into their own hands and setting up a new VC firm.
“The overwhelming majority of female partners moved from one fund (or accelerator) to another fund, to become a partner. While it’s always worth staying with an employer for a few years, women in VC should be aware that they might need to move to have the best chance at partnership,” adds Cross.
For women hoping to make it to partner at the fund they’re currently at — or soon to join, speakers at the WVC:E conference had some advice.
Don’t get distracted, said Tara Reeves, managing director at Eurazeo. What matters as an investor is sourcing great companies; focus on that above everything else.
Ask the tough questions about money right off the bat, said Dinika Mahtani, partner at Cherry Ventures. Ask how much the other partners are paid and how much carry they have; find out who owns the management company.
And, if you’re joining as a junior but want to become a partner, get it crystal clear what you need to do to get that promotion. Mahtani, who joined Cherry as a principal with the explicit intention to reach partner, said she asked to be assessed every quarter on the progress she was making against five key areas — and was promoted to partner at the start of this year, two and a half years after joining the firm.
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