Tag: Venture capital

2023 FTMBA grads land record number of VC jobs

|By Jeanette Brown
two guys standing in front of a sedan
Will McKelvey, MBA 23, (right) met with 43 founders in five days on a cross-country trip to Berkeley in 2021 with his college roommate. McKelvey was planning on pursuing venture capital at Haas. He now works at VC fund Lerer Hippeau.

Before Will McKelvey arrived to enroll in the full-time MBA program at Berkeley Haas in 2021, he and his college roommate drove cross-country to California. Along the way, McKelvey, who was planning a career in venture capital, met with as many startups as possible—a whopping 43 founders in five days. McKelvey, an Ohio native, even launched a blog sharing his impressions of venture opportunities from Dayton to Detroit to Chicago.

“You can’t dabble in VC,” McKelvey, MBA 23, who became interested in the economic power of startups while working for Democratic Congressman Ro Khanna for four years, said. “If you decide it’s your thing, go all in. It’s not a space for tourists.” 

At Haas, McKelvey didn’t let up, interning at multiple venture firms and serving as co-president of the Haas VC Club. Now an investor at early-stage VC fund Lerer Hippeau, McKelvey is among a record number of 2023 Berkeley Haas MBA graduates working in the field of venture capital.

Will McKelvey is now an investor at early-stage VC fund Lerer Hippeau.

“VC is the second-biggest sector for finance jobs among our MBAs,” said William Rindfuss, a member of the Haas Professional Faculty who leads strategic programs for the finance faculty group and manages financial services recruiting at Haas. “Only investment banking drew more recent grads.”

Fourteen of the 2023 FTMBA graduates accepted employment in venture capital, a record high. Of that group, half work for venture funds, and half have joined venture arms of tech, health care, and financial services companies, Rindfuss said. 

Rindfuss attributes the growth to the support of the Berkeley Haas alumni network, comprehensive courses in venture capital, including New Venture Finance, an increase in campus resources for VC, and the school’s Bay Area location. 

Proximity to venture firms gives students the ability to explore VC through both in-semester internships and summer internships over the course of the two-year MBA program. Such a portfolio of experiences can lead to full-time offers. But as Rindfuss notes, landing a job in venture capital differs widely from investment banking.

Proximity to venture firms gives students the ability to explore VC through both in-semester internships and summer internships over the course of the two-year MBA program.

That’s where the students’ hard work comes in with landing internships and jobs. While big banks recruit on campus through a structured process, VC firms expect students to get their attention and come to them, which might mean writing whitepapers on emerging subsectors or reaching out to firms with project ideas in order to build their networks.

Just as the Haas Finance Club has long been a major source of support for Haas students pursuing investment banking, the VC Club has grown into a similar resource, Rindfuss said. The club leads an annual VC Speaker Series course, drawing senior partners and associates from Bay Area VC funds, who offer both big picture and tactical advice.

A pivot from tech to VC

For Aparna Chaganty, MBA 23, breaking into venture capital meant landing an internship with Bessemer Venture Partners. An engineer from India with a master’s in information systems (MIS) degree from Carnegie Mellon, Chaganty was a data scientist and product manager at Salesforce when she started exploring a career pivot.

Aparna Chaganty, MBA 23, works for Bessemer Venture Partners in India.

“I really enjoyed building new technology, but I also wanted to know what other paths there were out there,” she said.

Venture capital piqued her interest as a perfect way to combine her tech background with entrepreneurship. “I have always found the growth story of startups extremely inspiring,” she said. “In VC, you can be really close to bringing about change and creating new value in the economy.”

Chaganty ended up accepting a full-time role as an investor at Bessemer Venture Partners in India, an opportunity to return to her home country. Though it hadn’t been her plan at the start, she said she was thrilled by the opportunity to join after Bessemer raised its first India fund. “There is so much entrepreneurship coming out of India,” she said. “Being part of that zero-to-one story is a once-in-a-generation opportunity and being a VC at Bessemer gives me a front-row seat to witness and contribute to that change.”

Crafting your own opportunities

Alex Rohrbach, MBA 23, came to Haas after several years working as a consultant at McKinsey and at an on-demand staffing startup. 

portrait of a man in a blue shirt
Alex Rohrbach, MBA 23, is at Thomvest Ventures.

He discovered that both experiences were applicable in VC. “Very quickly, I could add value to busy VCs who needed extra help,” he said. By doing projects with multiple VC firms during the school year in his free time, Rohrbach got exposure to various funds and VCs, helping him learn how they think and structure deals. 

“Many MBAs don’t realize that they have a lot of skills they can apply on day one with a VC firm,” Rohrbach said. “Aspiring VCs can develop a thesis about an industry, source companies on campus, and help organize events. If you figure out what you’re good at, you can craft your own opportunities.”

Rohrbach graduated with a job at Thomvest Ventures, a 25-year-old San Francisco fund. He spent his summer internship with Thomvest but says it was never a direct path to full-time employment. 

“Each fellowship and internship was a stepping stone, but I didn’t know exactly where I would end up,” he said. In his first year at Haas, he got a fellowship at Pear VC, an early-stage venture firm. He also received a Haas Entrepreneurial Finance Fellowship, providing a $5,000 cash award and mentorship with a Haas alum. “Even more valuable than the money was the access to a mentor – in my case, Andrew Krowne at Dolby Family Ventures,” Rohrbach said. 

Rohrbach also consulted during his first year with Union Labs, a VC firm that past Haasies worked for. 

“I started to build a portfolio of work so that by the time I was interviewing for summer internships, I had a lot I could talk about,” he said. 

Rindfuss and others at Haas hope the number of students pursuing venture capital will only continue to grow as Haasies find homes at more VC firms and bring their experience and advice to future students. 

“As more of our graduates succeed in venture capital, we are developing a stronger pool of alumni that will support our students,” Rindfuss said. “It’s an exciting time.”

Berkeley undergrad student team wins global venture capital final; EWMBAs take 3rd

| by Kim Girard
Undergrads holding check at VCIC finals.
The UC Berkeley Undergraduate student team took first place at Global VCIC: Victor Li, David Wang. Carol Xie, Allen Wang, and Blair Wu.

A group of UC Berkeley undergraduate students’ stellar startup-vetting skills netted them first place against a field of 120 teams at the Global Venture Capital Investment Competition (VCIC) finals.

Members of the winning team that competed at University of North Carolina’s Kenan-Flagler Business School on April 8-9 included Berkeley Haas student David Wang, BS 22, (Business & Chemical Engineering); Victor Li, BS 22, (Electrical Engineering & Computer Science), Carol Xie,  BA 22, (Computer Science & Statistics); Allen Wang, BA 23, (Economics & Data Science);  and Blair Wu, BA 24, (Economics & Biology).

A team of Berkeley Haas evening & weekend MBA students took third place, including Andrew Celin, John Eastman, Shenshen Hu, Terrence Tse, and Georgia Wright-Simmons, all EWMBA 22.  

Photo of EWMBA team
The Berkeley Haas EWMBA team, left to right: Georgia Wright-Simmons, John Eastman, Terrence Tse, Andrew Celin, and Shenshen Hu, all EWMBA 22.

“I’m blown away by these wins,” said Rhonda Shrader, executive director of the Berkeley Haas Entrepreneurship Program (BHEP). Shrader, who accompanied the students, said she was pleased that VCIC returned as an in-person event this year. 

More than 120 university and graduate school teams compete at VCIC. The competition has a two-fold mission: to make students VCs for the day and allow startups to jumpstart their fundraising. Since the competition’s inception in 1998, more than 800 founders have received 1,500 practice term sheets from student investment teams.

At the finals, the Berkeley undergraduates performed due diligence on three startups. After writing up term sheets, the team recommended a $5.25 million investment in agriculture technology startup Atira. Atira is developing an indoor system that promises to grow vegetables 40 percent faster without energy waste or pesticides. 

“The business has a lot of potential,” said Wu, who took a gap semester off to work at a venture capital firm last year and met her teammates through Berkeley’s Association of Chinese Entrepreneurs (ACE). “They’d already acquired patents and had a strong team. Their product was solid and there’s strong market demand.”

Photo of the undergrad team at worka
The UC Berkeley undergraduate team at work during the competition.

David Wang, BS 22, said he believes that two key factors helped with the win: team dynamics and mentorship. “We purposely looked for folks with diverse functional and industry experience ranging from energy consulting to healthcare investment banking to tech entrepreneurship,” he said. 

“We purposely looked for folks with diverse functional and industry experience ranging from energy consulting to healthcare investment banking to tech entrepreneurship.” —David Wang.

Wang also credited Haas MBA alumnus Elan Tye, a principal at JAZZ Venture Partners, and Matt Kirmayer, a partner at law firm Perkins Coie, for spending “countless hours preparing us for the competition…We could not have done it without them,” he said.

Shrader said the team “crushed” its partner meeting round, nailing both the startup valuation and the Q&A session.

“Everybody had a role and everybody spoke at the finals and you could see that their emphasis was on team work,” she said.”This team definitely had confidence without attitude.”

“Collaboration is the key word:” Venture capital’s rise at Haas

| by Kim Girard
Stanford and Haas students came together at Haas in November for a first of a kind founder-investor mixer.  Left to right: Atusa Sadhegi,  EWMBA 22 (Berkeley Haas), C.C. Gong (Stanford GSB), Alon Dror (Stanford GSB), Alejandra Vergara, MBA 22 (Berkeley Haas), and Dogakan Toka, EWMBA 22 (Berkeley Haas). Photo: Jim Block

On a recent rainy night, more than 100 Berkeley Haas and Stanford GSB students convened in Chou Hall’s Spieker Forum for a first-of-its-kind Founder-Investor Mixer.

Haas MBA students Atusa Sadeghi and Alejandra (Ale) Vergara, along with Dogakan Toka, EWMBA 22 and co-president of the Berkeley Entrepreneurship Association (BEA), were behind the event. As co-presidents of the Haas Venture Capital Club, they decided it was time for students from the two programs to get to know each other in the tight-knit industry, where they’d inevitably run into each other post-graduation. 

“I think collaboration is the key word here,” said Sadeghi, EWMBA 22, a former mechanical engineer who transitioned into venture capital over the last two years. “If we’re going to be in the same industry, let’s be united.”

VC Club mixer with Stanford and Haas MBA students
Stanford and Berkeley Haas MBA students getting to know each other at the founder-investor mixer in Spieker Forum. Photo: Jim Block

A new fund

That shared vision for unity among investors and entrepreneurs is something Sadeghi and Vergara, full-time MBA 22, have emphasized since taking on their roles amid the Covid pandemic. Under their watch, they organized the event with Stanford, landing the support of sponsor First Republic Bank and Andrew Liou, a senior relationship manager at the bank, who “didn’t think twice before supporting the collaborative effort,” Vergara said.

Membership in the student-run VC club, founded in 2018 by evening & weekend MBA students Chris Truglia and Scott Graham, has increased from about 100 to more than 500 students, split 50-50 between the evening & weekend and full-time MBA programs. Since its founding, collaboration and networking among students from both the programs has been critical to the club’s success, Truglia said.

Alejandra Vergara (left) and Atusa Sadhegi are co-presidents of the Haas VC Club. Photo: Jim Block

The club hosts popular pitch nights, often partnering with other UC Berkeley clubs, and has built a database with answers to the most common questions students ask about the venture capital industry. This past fall, venture capital club leadership also helped spearhead the creation of Courtyard Ventures, a new venture fund led by Haas MBA students that provides an opportunity for Cal students and alumni to invest in early-stage Cal startups. The fund has recently begun deploying capital, after exceeding funding goals and closing its first two investments in early January, Sadeghi said.

“These women are amazing—they’ve done an incredible job,” said Deepak Gupta, an investor and venture capital industry advisor with the Berkeley Haas Career Management Group.

Deepak Gupta
Deepak Gupta, venture capital industry advisor with the Haas Career Management Group.

While entrepreneurship is a well-established career path at Haas, Gupta said he’s seen a shift in student interest and effort in venture capital over the past three years, as the number of Bay Area VC funds has proliferated. “Now, these funds are coming to Haas to recruit for associate and principal roles,” said Gupta, who is also managing partner of his own pre-seed fund Blue Bear Ventures started at UC Berkeley. By next year, Gupta predicts Haas could double its number of full-time offers.

That growth would be significant. For each of the past two summers, about 15 to 20 full-time MBA students interned at venture capital firms, up from just a few in 2015, said William Rindfuss, executive director of strategic programs in the Haas Finance Group. While there’s a longer track record of students studying finance going into investment banking, a total of around 10 grads took full-time jobs in venture capital over the past two years. “We’ve had more students doing VC internships, and that will likely lead to more full-time VC job offers,” Rindfuss said. 

The passion for investing

But increased hiring comes down to overcoming challenges endemic to the venture capital industry. VC funds can be insular, they don’t hire on a predictable schedule, and entry-level pay can be low compared to other finance jobs—with a big payoff delayed until you make partner, Gupta said.

“Venture is so ‘just in time’ and when people hire you you start immediately. It’s not like consulting  where you get your offer and start next July,” said Jeff Diamond, MBA 22, a VC Club officer and a general partner at Courtyard Ventures. But Diamond, who came to Haas to switch from a career in the entertainment industry to early-stage investing, said he’s committed to a VC career. “It’s a lot of work but it’s rewarding,” he said. “It’s what I liked about working with artists, writers, and directors. You want to be the person who works with them. The idea of being with these companies for the long haul is what interests me.”

“The idea of being with these companies for the long haul is what interests me.” — Jeff Diamond, MBA 22

There’s clearly passion for investing in the Haas alumni network, which is expanding to include graduates like Sydney Thomas, MBA 16, a principal at seed-stage fund Precursor Ventures; Matthew Divack, MBA 19, an investor at Moment Ventures, and Champ Suthipongchai, MBA 15, who co-founded Creative Ventures, a tech VC firm investing in startups that address the impact of increasing labor shortages, rising healthcare costs, and the climate crisis.

Making alumni connections

An earlier success story in venture capital, Michael Berolzheimer, MBA 07, founded Bee Partners in 2008. An internship at pre-seed fund Bee Partners piqued Vergara’s interest last year, but she worried she lacked a technical background. Then Vergara met Kira Noodleman, MBA 17, a partner at Bee, through the Berkeley Female Founder and Funder’s summit last year. “Kira encouraged me to apply,” said Vergara, who landed the internship. That led to a full-time job offer with the fund when she graduates in May.

Looking for more investment experience, Sadeghi found her internship as a senior venture associate at Blue Bear Capital (separate from Gupta’s fund, Blue Bear Ventures). She first met Carolin Funk, a Blue Bear partner invited by the 2020 Haas Venture Capital Club to speak at the school. Interviews at Blue Bear led to an offer. She then learned that recent alum André  Chabaneix, MBA 21, already worked at Blue Bear as a senior associate.

“André is just amazing,” Sadeghi said. “We have a lot in common in terms of our background and industry interest so we bonded pretty quickly. In our overlapping year at Haas we participated in the 2021 Venture Capital Investment Competition (VCIC)  where we ended up representing Berkeley at the global finals together—and now we’re great friends and colleagues.”

Left to right: Alejandra Vergara,(Berkeley Haas) Alon Dror (GSB), C.C. Gong (Stanford GSB), Dogakan Toka (Berkeley Haas), Atusa Sadeghi (Berkeley Haas), Paola Retes (Stanford GSB).

While students continue their internship and career recruitment this spring, the VC Club already has many events planned, including club-sponsored workshops, student-alumni mixer events and more collaboration with peer MBA programs. Vergara and Sadhegi encouraged students “who are just interested in learning more about VC or are fully committed to this career path,” to check out the club.

“It’s been such a pleasure running the 2021 VC club year with Ale, and we can’t wait to welcome the 2022 leadership team to carry us forward,” Sadhegi said. 

Haas partners on new initiative to increase Black investors in venture capital

| by Kim Girard

A program aimed at doubling the number of Black investors in venture capital over the next three years has been launched by BLCK VC, Operator Collective, Salesforce Ventures and UC Berkeley’s Haas School of Business.

The new Black Venture Institute will provide intensive education and networking opportunities for Black leaders who plan to work in venture capital and entrepreneurship. The goal is to graduate 300 fellows by 2023.

Berkeley Haas Entrepreneurship Prof. Toby Stuart will serve as faculty director for the  institute’s first cohort of 50 students, teaching the online course through Berkeley Executive Education.

Prof. Toby Stuart
Prof. Toby Stuart is faculty director for the first Black Venture Institute cohort.

The program, which kicks off Nov. 2, will teach the foundations of venture investing, including how to evaluate companies, how to structure, negotiate and value financing rounds, and the roles of general partners and limited partners. Dropbox co-founder and CEO Drew Houston, and ExecOnline founder and CEO Stephen Bailey, are both scheduled to teach sessions with Stuart during the first session.

Venture capital has extremely low representation of Black professionals in technical, leadership, and investing roles. Just 1% of venture-backed startups have a Black founder and fewer than 3% of venture capital investors are Black, according to a RateMyInvestor diversity report.

But venture investing is something that’s tough to just pick up, said Leyla Seka, a former executive at Salesforce who co-founded Operator Collective, a venture capital fund focused on women-owned ventures.

“Even if we could break down the barriers and throw open the doors, there’s still a huge learning curve,” Seka wrote in a blog post announcing the new institute. “It takes time to learn the terms, understand the process, and make the connections. Some people grew up in that world, absorbing this knowledge through osmosis, but others need a leg up.”

Seka discussed the subject of increasing the number of Black professionals in venture capital with Kristina Susac, former vice president of Berkeley Executive Education. Susac recommended Stuart to lead the new program. “He’s Haas’ most sought-after faculty member in the areas of strategy, VC, entrepreneurship, and innovation,” she said. “He advises world leaders, global CEOs, and new entrepreneurs, and the students love him.”

Susac said the strength of the Salesforce Ventures, Operator Collective and BLCK VC partnership, anchored by Stuart’s instructional expertise, makes the goal of doubling the number of Black investors in VC attainable.

Black Venture Institute fellows will also be supported by the broader venture capital community and will be given ongoing access and mentorship from leading VCs in the ecosystem. Lo Toney, MBA 97, of Plexo Capital, Bill Gurley of Benchmark, Ron Conway of SV Angel, April Underwood, MBA 07, of #Angels, Monique Woodard of Cake Ventures, Scott Kupor of Andreessen Horowitz, Charles Hudson of Precursor Ventures, and many more have already committed to participate in the program.