MBA-to-VC Pipeline Weakening as VC Shifts Toward AI and Hardware, New Research Suggests
The traditional route from obtaining an MBA to venturing into the venture capital (VC) industry remains prevalent; however, its robustness has weakened slightly, as suggested by PitchBook’s analysis and recent academic studies.
In 2024 alone, Harvard placed 50 of its 1,004 MBA graduates in VC roles, with a median starting salary of $177,500. Stanford followed suit, placing approximately 30 from its smaller class. PitchBook data reveals that more than 10,000 alumni from Harvard, Stanford, and Wharton hold senior positions at U.S. VC firms.
Despite this, the dominance of MBA graduates in venture capital is gradually diminishing, according to Stanford professor Ilya Strebulaev, who discovered that 44% of mid-career VC professionals held MBAs during the early 2000s, compared to just 32% today.
The cause behind this shift? The evolution of venture capital beyond traditional sectors into artificial intelligence and hardware, where technical expertise often trumps business school credentials. Consequently, firms are increasingly scouring talent from innovative companies like OpenAI and SpaceX rather than relying on elite MBA programs. “There is less demand for MBAs currently,” says executive recruiter Will Champagne to PitchBook.
It appears that students have yet to receive this message; Stanford’s VC club counts 600 members among the approximately 850 MBA students on campus. These students may be incurring a hefty cost, as pursuing an MBA at a top institution can exceed $200,000.
