Hi there,
I’m applying to both growth equity and VC and amwondering how much overlap there is. Do I need to prep for modeling in VC interviews too?
Hey there,
I’ve coached quite a few candidates through both, and while there’s definitely some overlap, the focus can be a bit different.
In VC interviews, it’s usually more about market sizing, sourcing ideas, and showing how you think about startups. It’s more big-picture thinking, storytelling, and how well you can evaluate founders and trends. Modeling usually isn’t a big focus, especially for early-stage roles. Growth equity is a bit more technical. You’ll need to build out operating models, understand unit economics, and be comfortable with valuation work.
If you’re prepping for both, I’d still take a look at modeling. Even if it doesn’t come up in VC, it’s pretty much expected in growth equity.
Good luck and let me know if you need any support with your preparation!
Growth equity and venture capital (VC) interviews differ in several key ways due to the nature of the investments they focus on:
Growth equity and VC interviews have some overlap but also key differences. Growth equity firms focus on more mature companies, so interviews will often involve detailed financial modeling, including revenue projections, valuation methods, and scalability analysis. You’ll need to demonstrate your ability to assess a company's financial health and growth potential.
In contrast, VC firms invest in early-stage startups, where the focus is less on modeling and more on evaluating market opportunity, product fit, and team dynamics. While basic financial metrics might come up in a VC interview, you’ll be asked to assess qualitative aspects such as the startup’s potential for disruption and the strength of its team.
To prepare, focus on financial modeling for growth equity, but for VC, emphasize your ability to analyze markets, trends, and evaluate early-stage companies. Modeling is less central in VC, where the emphasis is on qualitative analysis of startup potential.
Growth equity and venture capital (VC) interviews share some similarities but differ in focus due to their distinct investment strategies. VC interviews typically emphasize early-stage investing, requiring candidates to assess startup potential, market opportunities, and founder quality. Questions often revolve around industry trends, startup ecosystems, and qualitative evaluations of business models, with less focus on financial modeling since early-stage companies lack robust financials. Growth equity interviews, however, target more mature companies with proven revenue streams, so they lean heavily on financial analysis, operational metrics, and market positioning. Candidates are expected to demonstrate a deeper understanding of financial statements, growth strategies, and how to scale businesses.
For VC interviews, modeling skills are rarely a core focus, though basic financial literacy is expected, especially for later-stage VC roles. You might encounter case studies on market sizing or startup valuation using comparables or rough DCF models, but complex LBO modeling is uncommon. In contrast, growth equity interviews often include detailed financial modeling tests, such as three-statement models, LBOs, or scenario analyses, as these firms assess a company’s ability to generate returns through operational improvements and structured exits. Prep for VC by honing your ability to evaluate startups qualitatively and understanding term sheets, while for growth equity, prioritize financial modeling and operational diligence to align with their focus on scaling established businesses.
