Most undergrads are itching to become a capital allocator and decide on which companies get funded and which don’t. The job has been popularized by

All Undergrads are VCs

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2021-05-26 02:00:09

Most undergrads are itching to become a capital allocator and decide on which companies get funded and which don’t. The job has been popularized by the stories of many Silicon Valley investors making it big by riding with the next unicorn. What few realize is that every undergrad entering the industry is their own VC. Instead of allocating money, they are simply allocating their time.

Where you work after undergrad is su ch an influential decision that often shapes where you live, who you meet, and what fields you become interested in. Further, this decision is also a very early indication of the risk-taking power you have. My personal experience has led me to believe that most undergrads end up working for the most well-known company or the highest paying company that hires them. While there is nothing wrong with that decision, especially given that some students have no option but to work for companies that pay the most, this decision should not be a forgone conclusion. Rather, the decision should still be made after some calculations.

We live in a system where FAANG sucks up most technically talented undergraduates with attractive signing bonuses and base salary. However, as your own VC, there should be some consideration for companies that give a lower base salary but have far greater upside in the equity. If you believe in a startup’s vision and they have financial records that seem reasonable, it may be a worthwhile investment. Do due diligence, like any investor, into the company and see if there is a potential future. Be your own VC.