Ivan Cerino (MS’21, MBA’23) has a background in biomedical engineering, but after attempting to launch two startups in Mexico he found himself in the US working in software development. But that itch to jump into startups again led him to UT Dallas where he could earn his MBA and learn more about the entrepreneurial ecosystem in the US at the same time. Last year, Ivan spent an extended internship with the venture capital firm Moonshots Capital.
During the last semester of my MSIE (Master’s in Innovation and Entrepreneurship), I signed up to take the Seed Fund Support Course (ENTP 4395 / 6377) with Professor Bryan Chambers. This was my first introduction to the VC industry and, honestly, one of the best classes I attended in my whole education. During the semester, Professor Chambers mentioned the possibility for a few students to get a fellowship to work at a local VC firm after finishing the course. That immediately caught my attention; remember my goal has always been to start my own company, so my thought was if I could join a VC firm I could probably ‘reverse engineer’ and deeply understand one of the most critical and complicated parts of having a startup: raising funds.
So, when the final presentations were completed I inquired with my professor about the fellowship. I was soon connected with Craig Cummings, the General Partner and Co-founder of Moonshots Capital, a VC firm with offices in Austin and Los Angeles.
A quick note: One the most important things I’ve learned from this industry, and that I later reinforced working at Moonshots; in the VC industry connections-introductions mean a lot, seriously.
I had two interviews, prior to being accepted into the fellowship. The first interview was with the main associate of the firm, which later would become the person I would report to. The second interview was with Craig; a few days later they confirmed the opportunity for me to collaborate with them as an MBA Associate.
Being an engineer with a non-financial background, I believe that what opened the door for me was all the experience and skills I obtained from the Seed Fund class and my initiative and eagerness to get this opportunity (and, of course, the intro from Bryan). Later I learned that people in the VC industry come from very diverse backgrounds. I worked part-time at Moonshots for 11 months while also attending my MBA classes and having a full-time job. So no, it wasn’t easy, but it was totally worth it.
Moonshots Capital invests in seed to late-seed stage startups, for example, tech companies raising around $2.5M to $5M where Moonshots may potentially lead the rounds. The whole firm operates remotely; however, during my time with them, I had the chance to fly to Austin and LA to attend a few events and meet the team; that was one of the richest experiences because I got the opportunity to meet wonderful people, entrepreneurs, and investors doing exciting things.
During those 11 months, my role was to be the first point of contact between the firm and a potential investment opportunity. I would review hundreds of pitches every month to look out for the ones that had potential, and that also fit the firm’s portfolio strategy. If I came across a deck that seemed interesting and had potential, I would reach out to the company founders for an introductory call and some additional information. If everything made sense, I would recommend that the main associate hold a meeting with them. We would have a weekly meeting to discuss these potential opportunities, which we would later share with the General Partners of the firm.
I take pride in ‘having found’ what I believe must have been the only investment that has come thru this channel. Most of the investments the firm has done in the past, and I think this is common throughout the industry, come from warm intros from other investors or founders previously funded. Yes, the vast majority of pitches they get from cold emails, or the website never gets to the last stage of consideration. And even if they do, 99% of deals end up in a non-investment decision. Many factors play into this decision and go beyond this post’s topic, but it was interesting to see and learn from it.
I was also there while the firm was in the process of raising its 3rd fund, which also was a unique and enriching experience to witness; they are on the run to raise $100M. It was very interesting to see that, in the end, the investors/firms also do the same thing that the founders do; they try to convince other people to invest in their business opportunity. And when you understand and are aware of that, I think it gives you more clarity on how to approach a VC firm and raise funds for your venture.
So, to conclude, here are two parting thoughts:
- First, did it work for me? Did I understand the VCs so well that I could raise funds for my ideas? Well, we will see; next year, I plan to start my own startup and put to work all of the skills, learning, and connections I gained. One thing I’m sure of, it’s been a privilege and a unique opportunity; I know not every founder has the chance to do this, and perhaps now I have a tiny advantage.
- Second, what is my advice if you want to work at a VC firm or start your own startup? Well, as I said before, in this industry, no matter which side you are, connection means a lot, so start working on your network, get out there and attend startup-investor events, meet founders and investors, shake hands, introduce yourself, and work on those relationships, then ask these people to make an intro for you, send a cold email (you never know)… and if you have the chance, take the Professor Chamber’s Seed Fund class.