Working for a venture capital firm can be both rewarding and profitable. The majority of venture capital jobs fall into one of five categories. Venture partner, principal, associate, analyst, and entrepreneur-in-training are the various categories. Of course, there are many support roles in the venture capital industry, such as human resources, accounting, and administrative assistants, who assist the chief executives and venture capital firms in their daily operations.
Typical venture capital careers begin in the financial industry or in a start-up company’s operations. A venture partner is usually someone who makes decisions about the venture capital fund’s investments. This could entail putting money into a new business. The venture partner is a general partner who invests a significant amount of money in the venture capital fund. A high-level investment professional usually fills this position.
The next level down from a partner is a principal. A principal is usually a mid-level investment professional who has worked as an associate in the venture capital industry and helped the firm close successful venture capital deals. The first step in a venture capital career is to work in a position that is just below that of a partner in the firm. This is known as a partner track position, which means that if you are a principal, you have a chance to become a partner in the firm. A master’s of business administration (MBA) degree is usually required of a venture capital firm’s principal.
Associates — those who handle the venture capital firm’s deal sourcing — are the most common entry-level positions in venture capital. In general, associates who are on the partner track are those who were hired after completing their MBA. An associate’s career will typically be accelerated if he or she brings in a successful deal to the firm. A junior associate is an entry-level associate position. Senior associate is the highest-ranking associate position. Advancement in the associate position is usually determined by the success of the deals that are sourced.
Following the sourcing of a potential deal in a venture capital firm, an analyst performs the due diligence required for a successful transaction. Extensive research and analysis of the prospective company and its market are part of the due diligence process. Financial projections are usually made by the analyst based on the due diligence done on a potential deal. This helps determine the viability of a potential investment and the time it will take to see a return on investment.
Many venture capital firms hire a budding entrepreneur. An entrepreneur in training is a professional in a specific industry who is hired on a temporary basis by a venture capital firm. An entrepreneur in training typically works with a venture capital firm for six to one year. This position is regarded as a consulting position. This position is not available at all firms, and its availability is dependent on the industry in which the prospective investment deals are to be made.