<p>I have always wanted to get an MBA and work in some type of business. Lately I've been considering studying engineering as an undergraduate because I'll be learning plenty of business skills in business school and I'm pretty interested in engineering, just not as a career. I've been really interested in venture capital as of late, and I've been told that an engineering and science based background is a must for this industry. This seems perfect, but my biggest engineering interest is industrial engineering, a more math oriented major. IE is useful in many areas of business, but I feel like a form of engineering that can be used to produce something, such as computer engineering or biomedical engineering would be more useful for a career in venture capital. Is this true? Would a background in a field of engineering that can be used to produce products be more useful to a venture capitalist than IE background?</p>
<p>I’m a VC. </p>
<p>A VC tends to focus on businesses, sectors, and industries that interests him/her the most.</p>
<p>Since the 90’s VC and PE has been focused mostly in Technology. Anything technology. The value in having a scientist or engineer in a VC company that focuses on tech is not in the specific skill set that associate has, but in his/her ability to understand and translate some of the science into layman’s terms. Deal associates (you) focus in on the industries they understand the most. That is natural. So, as a deal associate it would be expected that the majority of deals you bring in will come from Industrial engineering or any related field. You will bring in your own deals and also be assigned to teams, committees, etc. Those groups work together to analyze the deal, decide on the deal (or make suggestions), then supervise the deal (possibly as board representatives in the portfolio company’s board). Not all members of these “committees” work directly for the VC company. Each member has his own specific skill set (Finance, Law, Accounting, Engineering, MD, etc.) that is needed to compete the deal.</p>
<p>My focus is in international business - import/export enterprises, foreign business coming in, and American business setting up overseas. My region of focus in in Western and Southern Africa where I have a lot of experience, and connections. I focus in mineral and mining development, real estate, and agriculture. Based on those 3 sectors you can tell what types of engineers are needed. </p>
<p>My deal associates come mostly from people I know. Business and political connections. I also recruit from my Alma Matter from undergrad, and grad. I recruit from the military as well. I do not use a ranking list of schools because of the opportunity cost of having such a narrow pool of candidates. </p>
<p>For me, it’s not the type of degree the interests me. It’s the candidates potential. I look for imagination, courage, determination/tenacity, integrity, intellectual curiosity, and the typical: math skills, business understanding (or strong desire/capability to understand), communication skills, networking/sales skills, etc. I do have some Harvard and Wharton types but those are people who know people I know and they have decades of experience to back it up. I’m 34, some of my associates are in their 60’s. The key (wisdom) is to surround yourself with talent, experience, and knowledge.</p>
<p>Regardless of what people think, VC’s do need medium quantitative skills. I evaluate companies and I evaluate portfolio’s of company’s. I evaluate how the addition of a company to my portfolio will effect the portfolio. I evaluate risk (variance and standard deviation). I compare my portfolio to outside measures. I run experiments on computers to predict outcomes. I make promises to my investors about a specific performance for my portfolio. To keep that promise I must continually assess it’s performance and that requires and understanding of algebra, calculus, and statistics applied to business purposes. Engineers are useful for that as well.</p>
<p>So by a science background do people really mean the ability to understand the science behind a product, not the ability to actually think up the ideas? In which case wouldn’t a more holistic, less in depth knowledge of science be more useful to VCs (along with good communication and quantitative skills)?</p>
<p>Study the field you enjoy the most. If you never make it in VC you’ll still need to get a job. Also If you don’t love your field, people will see the lack of enthusiasm for the science, and for your work. No one wants to work with a miserable person possibly 80 hours a week. </p>
<p>It’s also a quality of life issue.</p>
<p>I do about 60/week but it goes up during deadlines and emergencies. I do about 60 on average by choice because I love my work. I’m self employed so I could also do 35 but I would get bored lazing about. </p>
<p>So, Specialize, if that is what you want to do. Be a generalist, if that is what you want to do. Most of what you know and do you learn on the job anyway.</p>
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<p>Yes, but more than someone like me who took science classes in college but is really a finance person. I get the concepts but the questions are: Is this product “for real”? Is continued production of this product feasible? Can it be replicated? What is the technological future of this product? Where does the product fit among it peers in tech advancement? Is it already obsolete? What is this products utility? Is it really unique? Is there a better alternative? What is its marketability? (getting into business skills) Is it dependable? Can it be improved? should it be improved? etc.</p>
<p>Is it theory? What needs to be done to bring it from theory to fact? To production? to market? How much $$$…?</p>
<p>It’s why I appreciate someone with intellectual curiosity. Specialize in one thing but be interested in, and able to learn anything else.</p>
<p>It’s hard to find that type of person. Particularly if their grades inversely reflect their level of boredom in H.S. and undergrad.</p>
<p>Deal Associates (the majority of mine) work in their field. So some may come up with ideas of their own. Any deal you bring will be considered. If you’re hired (or contracted like most of mine) as an associate, the VC’s respect your ability and professionalism. They wouldn’t be surprised if you came up with something on your own or through your own company.</p>
<p>Everyone (most) in the VC environment is entrepreneurial. There is a spirit of creativity, development, and of personal and professional growth. I admit my B/D isn’t that intrepid, but he’s a great numbers guy and has some serious connections.</p>
<p>jakk, look into Drexel’s Business and Engineering program. (see the post I created about this a while back: <a href=“http://talk.collegeconfidential.com/drexel-university/680451-drexels-business-engineering-major-unique-prestigious.html[/url]”>http://talk.collegeconfidential.com/drexel-university/680451-drexels-business-engineering-major-unique-prestigious.html</a>)</p>
<p>The program is in the business school but combines industrial engineering, operations research, typical engineering electives that interest you, mathematics, and of course a business concentration. B&E Majors that have concentrated in fields like finance and operations management are recruited by the biggest financial firms and leadership rotation programs in orgs like J&J and GE. You’ll have to take at minimum requirements for a traditional (electrical, mechanical) engineering major as well, including all the chemistrys, materials, calc based physics, etc.</p>
<p>I’m contemplating on double majoring in IE and Bus at Michigan. It’s also the most suitable engineering major for me.</p>