VCs Still Hiring MBAs, But Firms Are Shifting Toward Technical Experience
In a trend that is both reassuring and unsettling for aspiring venture capitalists, top business schools like Harvard and Stanford continue to churn out graduates who land lucrative jobs at VC firms. However, new data and research suggest that the traditional MBA-to-VC pipeline is losing steam, with firms increasingly valuing technical expertise over business school credentials.
According to PitchBook reporting and academic research by Stanford professor Ilya Strebulaev, more than 10,000 alumni from Harvard, Stanford, and Wharton hold senior positions at U.S. VC firms. In 2024, Harvard placed 50 of its 1,004 MBA graduates into VC roles, with a median starting salary of $177,500. Stanford's smaller class saw around 30 MBAs land similar jobs.
However, the numbers tell a different story when looking at mid-career professionals in the venture capital industry. In the early 2000s, 44% of such individuals held MBAs, compared to just 32% today. This shift is largely driven by the evolution of VC into emerging sectors like AI and hardware, where technical expertise is now a more valuable asset than business school credentials.
"We're seeing a change in the types of skills that are required for success in venture capital," said Will Champagne, an executive recruiter who has worked with numerous top-tier VC firms. "There's less appetite for MBAs currently, as firms are increasingly looking for people with technical backgrounds and experience working on cutting-edge technologies."
This trend is reflected in the growing number of professionals from companies like OpenAI and SpaceX being recruited by VC firms. For instance, a recent report by PitchBook found that 20% of all VC investments in AI startups went to teams led by founders with no prior business school education.
Despite this shift, Stanford's VC club remains one of the largest and most active on campus, boasting around 600 members out of its roughly 850 MBA students. These students are paying a steep price for their membership, however, as the club's annual dues have risen to over $10,000 per member.
As the venture capital industry continues to evolve, it remains to be seen whether traditional MBA programs will adapt to meet the changing needs of firms. For now, aspiring VCs would do well to consider developing technical skills and experience working on emerging technologies if they hope to succeed in this rapidly shifting landscape.
Background
The MBA-to-VC pipeline has long been a staple of venture capital hiring practices. However, as the industry has grown and evolved, so too have its requirements for talent. With the rise of AI and hardware startups, firms are increasingly looking for professionals with technical expertise rather than just business school credentials.
Additional Perspectives
While some argue that the shift away from MBAs is a natural response to changing market conditions, others see it as a missed opportunity for traditional business schools to adapt and innovate. "Business schools have been slow to respond to the changing needs of industry," said one VC investor who wished to remain anonymous. "If they don't start producing graduates with more technical skills, they risk becoming irrelevant in the long term."
Current Status and Next Developments
As the venture capital industry continues to evolve, it remains to be seen whether traditional MBA programs will adapt to meet the changing needs of firms. For now, aspiring VCs would do well to consider developing technical skills and experience working on emerging technologies if they hope to succeed in this rapidly shifting landscape.
In the short term, expect VC firms to continue recruiting professionals with technical backgrounds and experience working on cutting-edge technologies. As for business schools, it remains to be seen whether they will adapt their curricula to meet these changing needs or risk becoming less relevant in the long term.
*Reporting by Techcrunch.*
