I continue to get queries from people on “How to Get a VC Job.” I always tell them that it’s tough to enter the business, given that the industry is consolidating. Most folks continue to want to try, and I understand that.
But, here’s a picture that I think does say a thousand words. We’ve all heard that fewer VC dollars are being raised, but I saw this chart a few days ago, and it really caught my eye:
In short, less money raised means less management fee with which firms can hire people (see “How Are VC Paid?”). In some cases, it means that firms shrink. There’s not enough money to keep everyone. So, while it might be possible to enter an industry while many are leaving, it’s tough.
If you want to be a VC, I don’t want to burst your bubble. But, consider having a Plan B.