Shifting Landscape in Venture Capital: MBA Grip Loosens as Tech Experience Takes Precedence Over Business School Credentials
The traditional route from MBA to venture capital (VC) continues to exist, yet its stability has somewhat weakened, as indicated by PitchBook’s data and recent academic studies.
In 2024, Harvard placed 50 of its 1,004 MBA graduates in VC positions, with a median starting salary of $177,500. Stanford, with a smaller class, placed around 30 graduates into similar roles. Over 10,000 alumni from Harvard, Stanford, and Wharton currently hold senior positions at U.S. VC firms, as per PitchBook’s data.
However, the dominance of MBAs in venture capital is starting to wane, according to Stanford professor Ilya Strebulaev. His research revealed that 44% of mid-career VC professionals held MBAs in the early 2000s compared to only 32% currently.
The shift can be attributed to the transformation of venture capital into sectors such as artificial intelligence and hardware, where technical expertise outweighs business school qualifications. As a result, VC firms are increasingly seeking talent from companies like OpenAI and SpaceX instead of top MBA programs. “There is less demand for MBAs at present,” says executive recruiter Will Champagne, speaking to PitchBook.
Despite this change, the allure of a prestigious MBA hasn’t diminished among students. Stanford’s VC club still counts 600 members among its approximately 850 MBA students. However, pursuing an MBA at a top university can come with a hefty price tag, exceeding $200,000.
