Keith Rabois Advises Young Professionals on Venture Capital Entry

Keith Rabois, a seasoned venture capitalist, shared insights for young professionals aiming to enter the venture capital (VC) field during an appearance on The Rise podcast on October 19, 2023. Rabois emphasized the importance of gaining practical experience before pursuing a career in VC, suggesting that aspiring investors should consider starting their own companies or working at startups.

During the podcast, Rabois expressed skepticism about new graduates jumping directly into venture capital roles. “I think it’s a bad idea for almost anybody right out of school to want to be a VC,” he stated. Instead, he encouraged young people to immerse themselves in the startup ecosystem. “You’d ask the question, like, ‘Why are they interested in venture?’ and usually when I meet people like that, the answers are pretty superficial,” he noted.

Rabois highlighted that understanding the intricacies of building a business is crucial. He stated, “First of all, it’ll make you more confident that you’re making the right decision. This is a 20-year job minimum.” He added that practical experience would make newcomers more effective in their roles and enhance their credibility within the industry.

As a managing director at Khosla Ventures and co-founder of Opendoor Technologies, Rabois has extensive experience in the field. He has also served on the boards of notable companies such as Reddit and Yelp. His career trajectory serves as a testament to the value of hands-on experience in the tech sector.

Rabois further suggested that recent graduates might consider joining a VC firm as associates to observe the industry dynamics. “You know, spend two years watching and learning… Because you’ll see how the industry really works,” he advised. He recommended using this time to evaluate personal fit within the venture capital landscape and to identify promising startups for future opportunities.

In his discussion, Rabois emphasized the long-term nature of a career in venture capital. He cautioned that if individuals choose to pursue this path too early, they may find themselves with limited opportunities later. “By the time you’re 30, you’ll have maybe two shots at a startup,” he explained.

In a related perspective, Delian Asparouhov, a partner at Founders Fund, elaborated on Rabois’s insights in a blog post. He outlined key lessons for aspiring VCs, including the importance of becoming a junior generalist and gaining experience at a high-growth startup. Asparouhov pointed out that a current VC must believe in a candidate’s potential to succeed, emphasizing that there are no shortcuts to developing the necessary expertise and judgment.

Rabois’s insights reflect a broader understanding within the venture capital community about the importance of foundational experience. As the industry continues to evolve, the advice from seasoned professionals like Rabois serves as a critical guide for the next generation of investors.