FAQ
The Venture Capital Industry
The Kauffman Fellows Program
Learning & Professional Development
The Application Process
The Selection Process
The Venture Capital Industry
How do I know if a career in venture capital is right for me?
There’s no certain way to measure, but there several well-understood criteria to consider. As venture capital is practiced, it focuses on investing in the most ambitious and fast-growing technology companies, which results in some spectacular successes and a high percentage of failures. Such an environment comes with an intensity and risk profile that is not for everyone. In this environment, working as a venture capitalist vs. as an entrepreneur requires a greater ability to deal with ambiguity, as there is very little short-term performance feedback as an investor, and it requires a proclivity for coaching and enabling others’ success. Early-stage companies offer little to prospective investors in the way of hard data, so passion and intuition are also important characteristics for successful venture investors.
Are there different ways to define "venture capital"?
“Venture capital” was originally a very specific form of financing companies too young and risky for banks. It has evolved as a term to represent the broad eco-system of technology innovation and today serves companies from their birth to pre-IPO stage. Venture capital is now practiced all over the world (which was not the case twenty years ago) but varies widely from country to country. A “venture capitalist” today is expected to offer much more than “capital” and must also bring a set of operational best practices patterns, networks of human resource and sales opportunities, and deep relationships with other venture capitalists. Particularly in the last decade, these networks must be global.
How has the industry been evolving?
Up until the recent economic downturn, venture capital has been maturing, growing more competitive, and going global. A handful of business historians have drawn the parallel between today’s venture industry and the investment banking industry of twenty years ago: once a cottage industry of small and secretive firms, investment banks forked into a cluster of global bulge-bracket brands and a constellation of niche players. Given the recent rise of global venture brands such as DFJ, Sequoia, Kleiner Perkins, Benchmark and others, coupled with a healthy flow of specialized venture funds, it’s a comparison worth monitoring. A second trend is the increasing sophistication of the entrepreneur, which has driven competition and differentiation in the industry, as start-ups demand more than capital from investors. A third trend: everyone, from corporations to universities to governments wants to be well-positioned in the technology commercialization game. These organizations see it as a matter of necessity: corporations for “open” R&D, universities to better exploit IP and retain talent, and governments to spur job growth and tax income. And so many of these entities have established beach-head Silicon Valley offices, to better collaborate and get in the start-up flow.
How has the challenging worldwide economy affected the Kauffman Fellows Program?
We are living through exciting times. Last fall, financial institutions and the global system of checks and balances were pushed beyond their safety circuit breakers. And the process of resetting and recalibrating investment priorities – in the public capital markets as well as the arena of private equity – takes time.
Within this context, however, we are seeing continued strong demand for Kauffman Fellowships from venture firms – investing across the IT, LS, and CleanTech sectors. Established firms and emerging managers alike seem to recognize that it is wise to invest in the human capital of the business – especially in times of change and uncertainty.
If there is a constant to the story of innovation, it is that while it sometimes comes from unexpected places and in unexpected forms, innovation most assuredly keeps on coming. And wise investors, while responding to new conditions, continue to patrol for opportunities and collaborate with entrepreneurs.
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The Kauffman Fellows Program
What is the Kauffman Fellows Program?
The Kauffman Fellows Program is a network of more than 300 industry professionals across fifteen countries and five continents. It is comprised of Kauffman Fellows, Mentors and Strategic Partners. The fellows and mentors hail from over 90 different venture funds ranging from brands such as Kleiner Perkins and Sequoia Capital to exciting emerging managers such as Emergence Capital Partners and Shasta Ventures. The program’s Strategic Partners represent leading service providers, universities, technology corporations, and governments from around the world, each interested in exploring synergies with the fellows’ network.
The program’s mission is “To identify, network and develop future global leaders of the venture capital industry.” We accomplish that objective through rigorous screening of applicants from around the world, matching them with leading venture firms, and providing a life-long platform of leadership development and industry best practices. New Candidates to Fellowship must complete an intense and interactive two-year structured leadership and learning program that is comprised of seven modules. Upon graduation, they achieve Fellow status. The strong bonds formed within and between classes during these two years are the foundation of the Program’s long-term success and ongoing learning and development infrastructure.
Why was the program formed?
The Kauffman Fellows Program was formed by the leadership at the Ewing Marion Kauffman Foundation in Kansas City in 1994. The purpose at the time was to address the problems of a lack of industry best practices and development infrastructure, and venture industry’s resistance to hiring and developing new talent.
How has it evolved since its founding?
The program has evolved on several fronts since its inception. With the spin-out from the Kauffman Foundation in 2003, the program gained the flexibility to recruit fellows and venture funds from around the world. That change has resulted in our expansion into sixteen countries and five continents in five years. We have also recruited fellows in venture capital roles from leading technology corporations and universities. Another important change is that the program now accepts applications from candidates already employed by venture funds for less than five years, a group we refer to as "affiliates."
How is the program structured?
The Program is governed by the Center for Venture Education in Palo Alto, CA, an independent 501(c)(3) public charity. It was formerly a program under the Ewing Marion Kauffman Foundation in Kansas City, MO.
How is it governed?
The program is governed by a board of directors and staff with deep venture capital expertise and history with the program. More information can be found on the staff and Board of Directors pages.
How is the organization funded?
The Program is primarily funded by the tuition it receives from participating venture funds. Additional funding comes from strategic partners around the globe who support the mission of the program.
With whom does the program partner?
The Kauffman Fellows Program has linked with businesses affiliated with the venture capital industry through our Partner Alliance. By participating in the program, partner firms have the opportunity to enhance their brands, benefit from new business referrals, and contribute to the development of the venture capital industry. Alliance members are recognized leaders in their respective industries, such as law, accounting, and executive recruiting, and provide financial and industry expertise to the KFP network. See a list of our partner firms.
Are the fellows or firms in the program from outside the United States?
Beginning in 2002, the Kauffman Fellows Program expanded globally. The program has now had fellows fulfill the 2-year structured learning portion of their fellowship while working in firms in India, Singapore, Vietnam, Japan, the United Kingdom, Germany, Sweden, Switzerland, Australia, and in Ghana, Africa. A complete list of fellows and their place of fellowship, as well as their current firms, can be found here.
How do venture capital firms benefit from participating in the program?
The Kauffman Fellows Program provides venture capital firms with a competitive edge in recruiting the best and brightest new hires to their firms, and it graduates more productive, better networked new venture professionals for their firm. Firms that participate in the KFP matching process have the added benefit of a streamlined recruiting process. Even from the beginning of the fellowship, the deeper and broader network of the fellows allows firms to see deal flow they would not otherwise see.
Benefits of the Kauffman Fellows Program for venture capital firms include:
- Access to a heavily screened, pre-qualified exceptional talent pool,
- Infrastructure necessary to accelerate the learning and development of new venture professionals,
- Access to an instant, incomparable global network that adds to, and therefore broadens and deepens, the firm’s network and deal flow, and
- Learning and networking by Kauffman Fellows that can be shared and leveraged across the entire firm.
How are fellows typically compensated during the Kauffman Fellows Program?
All compensation for the fellow is negotiated between the fellow and his or her firm. Fellows are hired as regular, full-time permanent or temporary employees of their venture capital firm. As such, salary and benefits are agreed upon between the fellow and his or her firm.
Who pays the fellow’s tuition?
The fellowship tuition and related expenses, such as travel to structured learning events, are paid by the venture firm.
What do Kauffman Fellows value most about the program?
There are several elements that appeal to Kauffman Fellows who complete the program. Foremost is the network of professionals who share the experience and values learned from the leading venture professionals in the world.
How have fellows fared in their careers?
- Industry retention of Kauffman Fellows is high. In contrast to industry averages, where only half of those who join VC firms stay in the industry, over 85% of all Kaufffman Fellows have remained in
venture capital.
- For all fellows who have remained in the venture capital industry for at least a year since graduating from the program, success rates are also high. Close to 70% are general partners in their firms.
- More than a dozen Kauffman Fellows have founded their own firms and closed their first funds.
Do fellows usually remain with their firms after the 24-month structured learning curriculum?
Over 70% of fellows remain with their firm for the first three years after the structured 2-year curriculum. After that period, a larger number of fellows tend to move to other venture firms.
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Learning and Professional Development
What is the curriculum structure?
The Kauffman Fellows Program is a unique full-immersion educational experience that takes advantage of a variety of instructional strategies and methodologies to ensure that fellows learn the essential
skills and knowledge necessary to succeed and lead in the venture capital industry. The program connects the best of adult learning theory with the needs of contemporary venture capitalists.
During the 2-year program, fellows assemble with their class seven times for structured learning programs. These programs include a 4-day orientation at the start of the fellowship, five additional 3-day seminars, and finally a 1-day graduation seminar that includes presentation of the fellows' field projects (described in a later question). Four modules are focused on venture industry topics and three on leadership development. Currently, most of these modules are held in Silicon Valley.
View a 1-page syllabus of the 7 learning modules covered during the 2-year Kauffman Fellowship.
After the first 2 years, fellows participate in ongoing programs that reinforce the theme of continuous learning and development, accomplished through a variety of learning modalities and activities that provide a forum and formalized network for interaction between KFP classes. Some of these events are industry-focused (wireless, life sciences, cleantech), others are geographic (India, Japan, China, Nordic, Israel, etc.), and some are for all fellows.
More information on the educational components of the program can be found in the Curriculum Overview section.
What are some examples of fellows’ field projects?
Fellows’ field projects tend to focus on investment strategies, operating practice of firms, or case studies of successful investments. Some examples of past field projects have included:
- Cloud Computing: A VC Perspective
- Kauffman Fellows Venture Corps
- Technology & Science Commercialization
- Biosimilars: An Opportunity or Not?
- The Cost of Failure
More information on field projects may be found in the Curriculum Overview section.
Is there an underlying philosophy behind the curriculum?
There is. Fundamentally, a venture capital professional must learn the industry best practices from proven professionals in a thorough and assured manner. But industry mechanics in no way assure that a venture capitalist will be successful, and as a result the bulk of the learning for fellows focuses on success within the human dynamic. This arena ranges from entrepreneurial to board to partnership dynamics.
Who comprises the faculty?
Our belief is that only those with deep industry experience and belief in the mission of the Kauffman Fellows Program can truly impart the curriculum. Therefore, during the 2-year structured program, the industry-focused learning modules are taught by senior fellows, mentors and outside industry leaders, and include advanced micro-cases from their own careers. Leadership sessions are taught by outside leadership experts.
Do fellows graduate and what are the requirements?
Fellows are required to actively participate in all educational modules and complete their independent field research project in order to successfully complete the program.
While the fellows' final learning session is known as "graduation", it is just the beginning of a lifelong fellowship. At this juncture, fellows move from a structured learning environment to become a greater part of the Kauffman Fellows network, participating in industry focus groups, taking part in ongoing technical training, and peer-to-peer learning.
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The Application Process
Why should I apply to become a Kauffman Finalist?
First, the upside benefits are huge. If you apply and are selected to be a Kauffman Finalist, three channels of opportunity open for you:
- An applicant can use his or her new certification as a Kauffman Finalist to secure interviews with any number of firms of interest to the finalist. Our experience has shown that venture capital firms are more than happy to talk to potential candidates who have survived the strict scrutiny of the Kauffman Fellows application process. If the finalist is then offered a job by one of these firms, the finalist can enter the Kauffman Fellows Program with the support of his or her new firm.
- A finalist can attend our introduction event, where interested venture firms interact with our pool of candidates in a variety of formal and informal settings. Venture firms have the opportunity to meet finalists they may not otherwise have spoken to, and finalists gain exposure to a larger number of firms.
- A Kauffman Finalist can give the program permission to forward his or her dossier to interested venture capital firms at any time during the year. A number of firms inquire about potential candidates who fit job specifications desired by the firm, whether or not those firms are in a position to attend our finalist introduction. If the firm hires a finalist through this process, this finalist can enter the Kauffman Fellows Program with the support of his or her new firm.
Second, there is no risk in applying. If you are selected to be a Kauffman Finalist, the venture community opens for you. If you are not selected to be a finalist, only you and the selection team at the Center for Venture Education know. And you may apply again – perhaps after a few more years' operating experience or perhaps after you have addressed other apparent deficiencies in your candidacy.
At a minimum, through the application process you learn more about your strengths and weaknesses (at least as they appear to venture professionals), and in the course of doing so, you are introduced to members of the venture community whom you would not otherwise have met.
How many people apply each year for the fellowship?
The Kauffman Fellows Program receives between 200 and 250 applications per year and selects 25-30 Kauffman Fellows for each class.
What are the educational and professional requirements for Kauffman Fellows?
There are only two technical requirements of the Kauffman Fellows Program:
- A graduate degree, preferably in business, science or technology. This requirement is occasionally waived depending on various factors in the applicant’s professional history.
- A minimum of 3 years of full-time professional experience.
Although Kauffman Fellows come from all backgrounds with varied achievement and expertise, they share some common characteristics and experiences. A candidate lacking strength in one area may compensate through exceptional strength in another area. On average, today’s Kauffman Fellow has:
- Deep domain expertise in a specific field;
- A history of proven leadership;
- An understanding of and a strong desire to be part of the venture-building process as a venture capitalist or leader of a venture-backed company;
- An understanding of, or involvement with, entrepreneurship;
- Experience and comfort navigating through ambiguous or unstructured environments;
- Demonstrations of calculated risk-taking;
- Maturity and wisdom to thrive in a sophisticated business environment;
- Excellent interpersonal skills;
- Confidence and insight for self-directed and introspective learning;
- Exceptional communications skills, both oral and written;
- Strong analytical skills and creative problem-solving capability; and
- Unquestioned integrity.
What is required in the application?
| |
Kauffman Finalist
Application |
Affiliate
Application
|
| Who should apply |
Applicants looking to enter the venture capital industry |
Applicants already working at a venture capital firm for less than 5 years |
| Application Requirements |
| Online Application |
√ |
√ |
Detailed CV/Resume
|
√ |
√ |
| Personal Statements (max 3 pages) |
√ |
√ |
| Statement of Interest |
|
To be completed by venture firm and proposed mentor |
| Professional References |
3 written references |
1 written reference from someone outside your firm
1 reference who will have a telephone interview with KFP staff |
Is there an advantage to applying early, ahead of the deadline?
Applications for a particular deadline are read and evaluated as a group, not on a first-received basis. That said, the benefit of applying in advance of the deadline is that it will allow the applicant sufficient time to provide additional or missing information that is needed by the program so that application readers will have a complete dossier to review. Incomplete applications will not be reviewed.
What are the specific requirements regarding an MBA or other graduate degree?
As stated above, one of the requirements of the Kauffman Fellows Program is a graduate degree. In the case of extraordinary circumstances or exceptional qualifications, the graduate degree requirement may be waived for a particular applicant. However, the KFP standard requirement is that the degree must be completed prior to beginning the fellowship.
What should I write in my personal statements/essays?
The personal statement section of the application requires the applicant choose and respond to five of a list of ten specific questions about the applicant’s personal and professional experiences in the areas of decision making, leadership, etc. The answers to all questions combined should not exceed 2 pages.
Is my application confidential?
Yes. Your application is read and evaluated by KFP staff and a small group of readers from venture capital firms. The names of applicants and semi-finalists are not made public. Candidates chosen as a Kauffman Finalists will have their names and short biographies distributed to a large number of venture capital firms as part of the process of securing a position at a firm.
When are transcripts due and can I use transcripts from a prior application?
Transcripts are no longer required to be submitted with the Kauffman Finalist application. However, once an applicant is notified that they have been chosen as a finalist, certified transcripts must be provided. Applicants will have approximately 4-6 weeks to procure their transcripts; if you attended a university outside of the United States and anticipate that it will take longer than 4-6 weeks to receive them, you may want to request them from your university in advance of finalist selection. Faxed transcripts are not accepted.
If you applied to the program in a previous year and wish to use transcripts from that application, please email us to confirm that your transcripts are on file and to ask that they be moved to an active file.
Affiliate applicants are not required to submit transcripts.
What are the criteria for my references?
Kauffman Finalist applicants must provide three professional references with their application. Affiliate applicants must provide a Statement of Interest, to be completed by their proposed mentor, one written reference from someone outside of their venture capital firm, and the name of one additional person who will have a telephone interview with KFP staff.
References must be provided by someone with whom the applicant has had a professional, working relationship, such as a former employer or graduate school advisor.
When are the recommendation letters due?
Recommendations are due by the application deadline. Our application contains specific instructions for the reference and is not a "letter of recommendation" in the classic sense. Please access the online application for instructions on sending out your requests for references. Recommenders return their forms directly to KFP.
Can I use my recommendations from a prior year application?
Since applicants to the program are achievement-oriented individuals who generally make significant progress from year to year, applicants should make sure that recommendations are up-to-date.
Do internships count as professional experience?
No. The Kauffman Fellows Program requires a minimum of 3 years of full-time, professional experience of all applicants. Persons interested in the program who do not yet have this level of work history are encouraged to apply to the program at a later date.
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The Selection Process
How do I best determine my chances for selection as a Kauffman Fellow?
Refer to the list of common characteristics of Kauffman Fellows and compare your experience and background to past or current fellows through their bios, especially those in the most recent classes.
The Kauffman Fellows Program is committed to helping bring diversity to the venture capital industry, and we especially encourage qualified women and minority candidates to apply. Please follow these links to download our brochures about women and minority candidates.
How is the final selection of fellows made?
Candidates not currently in the venture capital industry apply to become Kauffman Finalists; these applications are carefully screened to select approximately 30-40 finalists annually, all of whom are qualified and appropriate for the fellowship. Once the slate of finalists are chosen, the candidate and KFP staff combine resources to begin the process of securing a position with a venture firm. The program distributes a "bio book", containing 1-page histories of each finalist, to all Kauffman Fellows and Mentors as well as other venture firms of interest. Finalists work in conjunction with program staff as well as on their own to secure interviews and discussions with venture firms. Our experience has shown that venture capital firms are more than happy to talk to potential candidates who have survived the strict scrutiny of the Kauffman Finalist selection process.
The program also holds one or more Finalist Introduction events in which interested firms and finalists come together for a day of formal and informal discussions. The goal of these events is to expose finalists to a number of interested firms, and provide a time-efficient way for venture firms to meet a pool of talented candidates. Finalists securing a position with a venture firm may then join the next Fellows class with the support of their employing firm.
Affiliate candidates are already employed with a venture capital firm. These candidates go through an equally rigorous application and interview process to determine those that will be included in the fellows class. Though many of these candidates are qualified to serve as a Kauffman Fellow, each class will be selected to create the optimum learning community, with diversity in education, experience, and industry background, as well as size, type and geography of firms.
Is there any difference in the Kauffman Fellows Program between those who entered through the finalist and affiliate processes?
No. The finalist matching process and the affiliate selection process are two different channels for coming into the fellowship. Once selected to be a fellow, the two channels merge and the fellows go through the same learning and development process. While each fellow’s apprenticeship is designed around his or her skills, experience, expertise and the needs of the firm, the learning and development process is the same for finalist and affiliate fellows.
I am not a U.S. citizen; can I apply for the Kauffman Fellows Program?
The program is open to all applicants regardless of citizenship.
How many fellowships will be located outside of the U.S.?
There is no predetermined distribution of international and domestic fellowships. Over the past few years, fellows outside the U.S. have numbered between 5 and 8 per class.
Do I need a visa to apply to the Kauffman Fellows Program?
You do not need a US work visa to apply to the program. However, if you plan to work in the United States, you must have the appropriate documents. Procurement of visas is the sole responsibility of the applicant; the Kauffman Fellows Program does not assist in this matter.
Which venture firms will be participating in the next class of Kauffman Fellows, and where will they be located?
While there are some venture firms that participate in our program on a regular basis, it is not possible to answer this question in advance for any given year. The specific firms and their geographical distribution depend on the hiring needs of each company. In general and over the longer run, participation in the program mirrors the geographical distribution of the venture capital industry as a whole.
As a Kauffman Finalist, what if I don't secure a venture position by the start of the next Fellows class?
Kauffman Finalists who do not secure a job with a venture capital firm may, at their option, retain their finalist status for one additional year. This option may be particularly valuable to finalists who work in specialized fields of the venture industry so that they have the opportunity to better overlap with venture firm hiring needs.
If I am not selected as a finalist, should I reapply in later years?
Applicants who do not become finalists are welcome to reapply in subsequent years after additional years of professional experience.
Will I get feedback on my application and interviews?
Applicants who are chosen as semi-finalists but do not progress to the Finalist level are welcome to contact KFP staff to discuss their application and any areas that were deemed in need of development. Due to the volume of applications received, we are not able to provide specific feedback to those who are not chosen as semi-finalists.
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