Prior Industry Experience - Does It Matter To You?

by a searcher from Kettering University (GMI)

3 years ago

I'm curious both on the Searcher and Investor side - does prior experience in an industry matter?

SEARCHERS: do you seek out opportunities in sectors where you have prior experience? Or do you rather prioritize your search based on other factors?

       If other factors, what are those factors?

INVESTORS: do you care if a searcher already has intimate knowledge of the industry they're searching within? Does it impact your confidence in that search? 

       If so, does it impact it a lot or just a little?

Thanks!

2 likes
109 views
6 comments

investor from The University of Chicago - Booth School of Business

Many if not most experienced investors (my opinion) will not back a venture where the operator is new to the industry unless he/she has a successful track record of running and growing a company in the past.

3 years ago | like reply | 1 like

searcher from The University of North Carolina at Chapel Hill - Kenan-Flagler Business School

Speaking as a searcher here. I think it depends on the industry. I'm a retired military officer and making a career change. So I have a very limited choice of industries where I could claim to have experience. But I do have a lot of leadership, management, and other soft skills that translates well to a broad range of applications. So I look for companies and industries where those skills will help. For instance, I have no clue about the oil and gas industry. But I have an engineering degree and have been a director of aircraft maintenance, so I feel confident in my ability to handle an HVAC company or even a manufacturing company.

Another consideration is if the company has key personnel who will remain in place. This means that I can get away with less specific experience. However, I still wouldn't want to stay too far away from an industry that I was at least familiar with.

3 years ago | like reply | 1 like

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