For young, promising venture capitalists, the path to partner has suddenly become much steeper

At the later stage, it becomes much more important to go deep in diligence as the check sizes get bigger and the stakes go higher. The universe of growth companies is known and can be downloaded on PitchBook, said Jill Chase, an artificial intelligence investor at CapitalG who got promoted to partner last year. It’s up to her and her team of associates and vice presidents to get in front of the right founders and make an impression with the homework they’ve done.

The diligence continues long after the deal closes, Chase said. She relies on junior investors to research a founder’s market and create reports, adding value that goes beyond the check.

Network your way to a promotion

Fundraising for venture firms has become increasingly competitive, with dollars concentrated into fewer legacy funds. Exits have dried up, and investors are keeping more cash on hand so as not to run through their reserves and be forced to raise funds in a downcycle.

However, firms will staff up in areas where there’s demand for deals, Miller said. In a historic bitcoin bull run, he said, firms added crypto enthusiasts to their ranks. The lion’s share of venture capital is now flowing into artificial intelligence companies, and limited partners are seeking exposure to the new gold rush.

Firms might be faster to hire or promote young investors who land deals in the desired category. “You’ll not have trouble getting their attention,” Miller said. “The challenge is how do you get that check into that great deal.”

His advice is to get out there. Early-career investors can blog, host dinners, or be active on social media. “You can build a great social media presence that gets you in touch with founders,” Miller said.

Johnson, who oversees Sapphire’s operations, said having a strong network of other investors also creates a lot of value for her firm. “In venture, everyone talks to each other,” she said. Her team appreciates when an associate can share deal flow and offer intel on how their peers are responding to industry trends or economic conditions, she added.

When Brenner and cofounder Julie Lein started a fund, the two put together a plan for what it would take for a person at every level to get promoted. Each role had a hard metric, such as the number of deals closed, and a soft metric.

Her associate Jenieri Cyrus hit all the right notes. He came to the firm three years ago from Northwestern Kellogg with a background in real estate investing, and he showed an attention to detail and a team player attitude. Brenner added that nearly every time she talked to a peer investor, they said they just met Cyrus at an event.

“He’s everywhere,” Brenner said.

In March, Cyrus closed his third deal at Urban Innovation Fund, which has yet to be announced. The next day, the fund promoted him to senior associate and Brenner made it LinkedIn-official.

She posted, “I can’t wait to see what deal you source next :)”