Why ‘Talent Unboxing’ Is Set To Become The Latest VC Hiring Craze

By Eleanor Kaye

Venture capitalists are facing a unique combination of challenges right now. In a subdued market characterized by fewer, bigger rounds at later stages and a technology landscape evolving at a rate of knots, competition for the buzziest deals is fierce.

Against such a backdrop, conditions are primed for a talent shake-up, as firms reassess the skills and attributes they need in their corner to stay ahead of the pack. And those pursuing this seriously are set to zone in on one method over the coming months: “talent unboxing.”

Talent unboxing is an approach to hiring that pays less attention to the shiny exterior of a candidate and what they look like on their LinkedIn profile, and instead focuses on the true internal value that the potential hire can bring to the table.

That means looking at skills, insights, personal experiences and passion alongside the more standard markers of education and professional experience — assessing candidates in 3D, instead of just looking at the 2D “on paper” benefits.

The unboxed approach — something we’re already starting to see gain a foothold in the market — means shaking off tired, resume-based screening and interview practices and replacing them with a fresh strategy focused on specific skills rather than work experience.

A talent reset could be perceived as an unsettling time for current and aspiring VCs. It’s likely to bring both eye-catching hiring announcements (IVP, for example, hired Atlassian’s Kevin Egan to focus on portfolio sales strategies, and a16z raised eyebrows with the appointment of Daniel Penny to its American Dynamism team) as well as restructurings and potential layoffs.

A new cohort of candidates

But within this shift lies a big opportunity for talent that has previously gone overlooked or underrepresented in an industry which has been too homogeneous for too long. Because, as firms figure out how to lock in the talent they need to win deals and retain an edge in a shifting market, the savviest among them will start to look outside of the box. And that’s good news for candidates who don’t fit the traditional mold.

By resetting hiring parameters and thinking mindfully about what skills their firms will need in the coming years, VCs are on track to look afresh at where the “right” candidate might come from. That means less store will be set by specific accolades, such as having an MBA from a prestigious university or a certain calibre of internship (which tends to be more a marker of family connections rather than skills) under their belt.

Instead, the sector will expand the horizon of what a prospective VC looks like. They might be a Ph.D. candidate with an intricate understanding of the biochemistry processes underpinning the next generation of healthtech. Or they might be a self-taught coder who can connect with and understand founders and products at the foundation level, or a candidate who has deep networks in unconventional spaces, providing a conduit to untapped communities of founders.

If the VC market embraced talent unboxing at large, not only would they unearth the talent needed to win in their field, but it would also allow a new cohort of candidates to shine.

Just as VCs are discovering the benefits AI and tooling can bring to their internal operations, a new approach to hiring would unlock similar levels of previously overlooked value. This gear shift — one that would drive forward a more complex, interesting and full-spectrum approach to VC talent — would future-proof firms, enabling them to build truly 21st century teams ready to compete in a market undergoing a generational shift.

Eleanor Kaye is the managing director of Newton Venture Program, the U.K.’s most prestigious VC training initiative. The brainchild of LocalGlobe and London Business School, Newton works with a diverse cohort of aspiring and advancing VC professionals, helping them unlock their career aspirations and ensuring the next generation of venture leaders reflects the world we live in. Kaye regularly hosts and speaks on panels discussing diversity and inclusion across the tech and investment ecosystem and has appeared on the stage at London Tech Week, WVC:E and Female Founders Raise. Prior to joining Newton, she held senior roles at Palantir Technologies, helming the tech scale-up’s operations during a period of hypergrowth.

Illustration: Dom Guzman