Why getting VC jobs is now harder for MBA graduates
What's the story
The path from an MBA to a venture capital (VC) job is still very much alive. However, recent reports from PitchBook and academic research indicate that this route may be changing. In 2024, Harvard University placed 50 of its 1,004 MBA graduates into VC roles with a median starting salary of $177,500. Meanwhile, Stanford placed about 30 from its smaller class.
Alumni impact
Decline in MBA representation
Over 10,000 Harvard, Stanford, and Wharton MBA alumni are currently in senior roles at US VC firms, according to PitchBook data. However, the dominance of MBAs in venture capital is slowly declining. Stanford professor Ilya Strebulaev found that the percentage of mid-career venture professionals with MBAs has dropped from 44% in the early 2000s to 32% today.
Hiring trends
Shift in hiring preferences
The shift in demand is largely due to the evolution of venture capital beyond traditional sectors into areas like artificial intelligence (AI) and hardware. In these fields, technical experience is often valued more than business school credentials. As a result, firms are increasingly looking for talent from companies such as OpenAI and SpaceX rather than top-tier MBA programs. "There is less appetite for MBAs currently," executive recruiter Will Champagne told PitchBook.
Student interest
Student interest remains strong
Despite the changing trends in VC hiring, student interest in this field remains high. Stanford's VC club still has 600 members out of the roughly 850 MBA students on campus. However, pursuing an MBA at a top program can be quite expensive, often costing over $200,000. This high price tag does not seem to deter students from pursuing their interest in venture capital.