Have a "Fake" VC Offer, thoughts?
Hi guys, currently an investment banking analyst 2 that is looking to quit absolutely ASAP. Have been strictly targeting VC.
I networked really well with the founding partner of a firm. Did some networking calls with him, didn't really have an interview process at all, but on our last call he said he really liked my personality, loved my backround, and wants me to work for him. He said his fund is finishing a raise in June, and when the raise closes successfully, I can just join the team and work under him.
My question is, isn't there a large chance this will fail? What if the raise straight up doesn't close (I know it is a super rough environment), or what if they only raise 80% of what they want? I know you guys can't really chime in without knowing the context or the firm itself, but what are your guys thoughts here? I really want to just have an offer locked in and not worry, but this makes me feel like I should still be recruiting and networking aggressively (As much as I do not want to anymore). If helpful context, this is the firm's 4th fund, and were founded in 2018.
It makes me feel a bit better this is coming from the founder of the firm, but still feel kind of uneasy. I wasn't really comfortable with asking for an early offer letter, I really did not want to overstep and overreach. He never said we will 100% hire you, but rather framed it as "When the next fund closes in June, you can join then".
Thoughts?
I think it'd be totally valid to ask the GP for some assurances to your questions. If he's supposedly looking to hire for an Associate for a Fund IV, there should be at least some structure to the hiring process. As much as I understand your desire to close the books on recruiting, this wishy-washy "when it closes, you can join" doesn't inspire confidence.
What's the GP's background (does he have the pedigree/record to inspire confidence from potential LPs in a down market)? How much is he targeting (and how much does he have locked down; is there enough AUM to pay you)? How have the previous three funds done (2018-2021 funds are probably going to be rough vintages, as they invested at the top of the market)? If you're very serious about VC recruiting, it shouldn't be too difficult to research the above and come to your own conclusions.
Thank you, this is a great response and all of your points are incredibly valid and are good questions to think about. Thank you man.
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