How this CFO charted a career from big four audit to venture capital

Mary Kate Pennington is an outsourced CFO for the venture capital industry with more than 16 years experience in alternative assets. Her career began in the audit practice at PwC, followed by roles in both private equity and venture capital. This eventually inspired her to start her own business and serve as an outsourced CFO to firms like Motley Fool Ventures, Urban Innovation Fund, and Initiate Ventures.

We sat down with Mary Kate to talk about her career path, the typical day-to-day of an outsourced CFO, and advice on breaking into the industry.

CARTA: Tell us about your career path. What first led you to pursue finance and accounting?

 MARY KATE PENNINGTON: I graduated from Denison University with a double major in Psychology and Economics. It wasn’t until my senior year that I took an accounting elective and my professor noticed it easily clicked for me and encouraged me to pursue it as a career.

I knew I wanted to continue my education and get an MBA, but I didn’t have a specific career path in mind until I found a dual-degree program at Northeastern University which allowed me to earn both my MBA and a Master of Science in accounting (MSA) without having an undergraduate accounting background. 

While in grad school, I did an internship at PwC in Boston within their audit practice. I ended up being offered a job and staying there for seven years, working my way up to become a manager with a focus on large institutional investment firm audits. After five years in the Boston practice, I transferred to the Denver office and did a rotation in their national internal consulting group focused on creating and implementing operational efficiencies. I realized then that making things run more smoothly was something I truly enjoyed. I transitioned from PwC to a mid-sized private equity firm so I could implement some of these efficiencies in-house while using my alternative investment knowledge, but I found that the private equity industry was resistant to change.

How did you eventually find your way into venture capital?

While working in private equity, a former coworker from PwC reached out about an opportunity in venture capital. I’d always been interested in that world, but it had never felt accessible to me. VC felt like you needed a specific pedigree or an investment banking background to enter. 

I accepted a role at Aduro Advisors, a VC fund administrator, and spent four years there. I eventually moved into leadership, managing multiple teams of people and dozens of clients. However, I realized I was spending more time on internal management and less time on the hands-on client work and the investing side of venture that I actually enjoyed. So three years ago, I took a leap of faith and began my own consulting practice.  I now serve as an outsourced CFO and love this role because it’s a lot more hands-on. I get to hear more in-depth information about potential investments and how my clients' portfolio companies are progressing, while helping improve operations from within.

What does your day-to-day look like as an outsourced CFO? 

No one day is really the same as the next. Because many early-stage firms are lean, my role covers a lot of internal operations in addition to finance. I’m working with outside legal counsel, managing compliance, advising on best practices, reviewing financial statements and our fund admins' work, and coordinating with auditors and tax providers. 

I’m also advising the investing team on best financial practices. If they’re fundraising, I’m sharing what I see in the market and providing suggestions.

Earlier you touched on the preconceived notions you had about venture before working in the industry. What common misconceptions are there about venture capital? 

When I tell people I work in VC, they are often taken aback—there’s an assumption that it’s intimidating or too complicated for most people to understand. While the people I work with are some of the most intelligent people I’ve ever met, they are fluid and willing to adopt new ways of doing things. This is a big departure from the traditional, rigid investment banking style world that people picture when they hear I work in finance. 

Another misconception is that it's entirely male-dominated. While there is still a long way to go, two of my three current clients are led solely by female GPs. It was really important to me when I started my own consulting business that I work with women-led firms. I see much more diversity in venture capital than I ever saw working in private equity or with large institutional investment firms. It’s been a pleasant surprise to see how welcoming the industry is.

What advice would you give to young women looking to break into the industry?

Don’t be afraid to start small. Whether it’s an internship, shadowing someone for a day, or grabbing coffee with a person who is in a role that interests you – these opportunities can help you to learn about the typical career progression and the best way to work towards your goals. I always tell women to start building relationships and asking questions about the day-to-day work early on to get a good feel for the culture and environment.

I also think it's important to choose who you work with wisely. Early in my career, a partner who I respected at PwC told me he wouldn’t necessarily choose to work with the smartest people in the room; he recommended selecting people based on their character—collaborative and genuine people who were willing to put in the effort to grow and learn. You spend so much time with your colleagues; you should make sure you actually enjoy them. That’s a philosophy I’ve carried into my own consulting business, and I’m proud to say that it has worked out.