By Peyush Trehan | 17 December 2024
In venture capital, there’s a persistent myth that an MBA is your one-way ticket to success. It’s the kind of thinking that has endured through decades of pitch meetings and investment memos: an MBA means financial chops, sharp strategy, and an enviable network of connections. It’s a neat, comfortable narrative — and one that’s ripe for disruption.
Because here’s the thing: great investors aren’t cookie-cutter. The very start-ups VCs are chasing often thrive on breaking norms, so why should the teams evaluating them look so… similar? A growing body of research — and experience — points to the power of diverse teams to innovate, challenge biases, and, let’s be honest, outsmart the competition.
Take this gem from Harvard Business Review: teams made up of people with different backgrounds are, quite simply, smarter. Why? They force each other out of mental autopilot, bringing fresh eyes to stale problems. In venture capital, where spotting the next big thing often requires unconventional thinking, this kind of mental agility is gold.
It’s not just theory. Picture two analysts: Neev, the MBA-trained ace, and Zoya, a curious hire with a less traditional path. Neev’s strategy is structured — outreach on LinkedIn, analysing opportunities with cutting-edge tools, and tapping into his B-school network. Zoya, on the other hand, takes a different route. One morning on the metro, she strikes up a conversation with the person next to her — someone with a game-changing idea but no LinkedIn profile, let alone a pitch deck. By the time Neev wraps up his latest analysis, Zoya has uncovered a raw, untapped opportunity.
This isn’t about who’s better. Neev’s rigour ensures decisions are data-driven, while Zoya’s curiosity leads to unexpected discoveries. Together, they demonstrate the power of diverse approaches. Venture capital thrives when different perspectives come together, sparking innovation and challenging conventional thinking.
For years, the industry playbook has leaned on certain benchmarks — an MBA being the most obvious. But the traits that truly matter in venture capital go deeper: an entrepreneurial spirit, market intuition, a nose for trends, and a relentless curiosity about what’s next. These aren’t skills you can sum up in a degree. They’re lived, tested, and often found in the most unexpected places.
Of course, finding these qualities is no cakewalk. Hiring them means moving past checkboxes and asking better questions. What drives this person? How do they think? Do they challenge assumptions, spot gaps, or connect dots others might miss? At the end of the day, a VC firm is only as sharp as its people.
That’s not to say we don’t value foundational skills. We do. But we’re equally invested in fostering them. Team members are encouraged to reflect on their skill gaps and proactively identify ways to bridge them, whether through training sessions, seminars, or industry events. This approach ensures that everyone — from the seasoned MBA to the unconventional thinker — is well-equipped to make informed and impactful decisions.
An MBA can open doors, but it’s not the only key to success. By embracing a broader range of skills, experiences, and perspectives, venture capital can evolve into an even more dynamic and impactful space. At Merak, we’re committed to this evolution — not just because it feels right, but because it works. And in a world where the next big idea could come from anywhere, isn’t that exactly what venture capital needs?