<li>How does one go about becoming a Venture Capitalist?</li>
<li>If a venture capitalist works for a firm, is he/she investing the firm’s money or his/her own money?</li>
<li>What exactly do they do?</li>
<li>How much $$$ do Venture capitalists really make?</li>
<li>Does one need experience in a specific sector (other than financial services) to break into venture capital? In other words, does working in financial services make breaking into VC harder?</li>
<li>Do their jobs involve lots of travel?</li>
</ol>
<ol>
<li>Many ways. Most VCs actually happen to have backgrounds related to the companies they provide seed money to (aka engineerings, medical sciences).</li>
<li>Investing investors money as well as the principals (when you are a principal at VCs/PEs much of your compensation is realized later called the carry).</li>
<li>They provide seed money to first stage companies or startups. Say an entrepreneur comes to them telling them they have this amazing cancer drug but need funding for further research. VCs evaluate that and then invest in them. Thus, a good knowledge in area of expertise is necessary.</li>
<li>A hell of a lot.</li>
<li>Its good to have a good knowledge in the area of expertise. You want people who have worked with cancer drugs or silicon chips instead of your banking analyst if biomed or tech is your sector. However, financials are always important and so you will see a lot of people from say the tech M&A/research group at a bank be in VCs.</li>
<li>Possibly.</li>
</ol>
<p>I suggest you visit various VC websites. Unlike HFs they are not secretive. For example: <a href="http://www.sequoiacap.com/%5B/url%5D">http://www.sequoiacap.com/</a></p>
<p>Also check out the Midas listings on Forbes.</p>
<p>here's some sample job listings involving VC -- i just really posted the requirements. Mahras is correct on all accounts.</p>
<p>
[quote]
Looking for a Pre-MBA associate with absolutely no more than 4 years of experience out of undergraduate. Prefer an engineering, business, or technical degree from a top-tier undergrad and consulting, investment banking or equity research experience. Must have a strong understanding of technology. The associate program is a two year program and will be responsible for evaluating new investments and current portfolio analysis.
[/quote]
</p>
<p>
[quote]
Bachelors degree required. Engineering majors strongly preferred. Masters is a plus</p>
<p> 1 2 years of work experience in investment banking, consulting or other intense, fast paced environment</p>
<p> Strong communication skills, aggressiveness and long hours a must</p>
<p>Position description</p>
<p>===============</p>
<p>Primary responsibilities include the review and analysis of new investment opportunities presented to the firm. Analyst will be required to supervise the entire diligence process, technical and business related, including interaction with technical advisors and relevant industry experts. Analyst will be supervised by a principal of the firm but report directly to the partners on a consistent basis. Position requires a high degree of comfort and interest with emerging technologies in the communications and semiconductor sectors including wireless components and infrastructure, optical components and enabling technologies, semiconductor materials, devices and process equipment, and data networking and communications infrastructure.
[/quote]
</p>
<p>
[quote]
seeking a post-MBA Associate with 23 years private equity experience to focus on late-stage technology venture capital investing in private companies. The position is located in Menlo Park, CA and the start date is June 2006.</p>
<p>This is an attractive opportunity to work with one of the premier emerging venture funds.</p>
<p>The ideal candidate will have the following: </p>
<ul>
<li>23 years of total work experience in technology in one of the following disciplines: </li>
<li>investment banking </li>
<li><p>venture capital or private equity </p></li>
<li><p>Strong quantitative and analytical skills are required with a preference for candidates with modeling / finance experience.</p></li>
<li><p>Must have exceptional communication and networking skills and a high level of maturity. </p></li>
<li><p>Due diligence and research skills are a top priority. </p></li>
<li><p>Must have a proactive attitude with solid business judgment.
[/quote]
</p></li>
</ul>
<p>
[quote]
a specialized investment and technology development firm with approximately US $20 billion in aggregate capital, seeks an Associate with a minimum of 2 years of venture capital experience to join their Silicon Valley-based venture group, which invests broadly in companies in information technology and life sciences. Demonstrated deal transaction experience in early and expansion stage companies is required. Experience with companies in hardware components and/or emerging technologies is strongly preferred.
[/quote]
</p>
<p>Oh another question....Why are a lot of the venture capital firms NOT concentrated in New York? I imagined most of them would because it's like the financial capital of the world.</p>
<p>Dont expect NYC to be the finance capital for long. Venture Capital firms are scattered around all over. Preference and proximity to their industry would be a reasonable guess, at least to me it is. Probably why so many vc tech firms are in menlo park and surrounding areas. And with computeres, the need to actually be on or near wallstreet has diminished to ziltch, and the need for trading floors are diminishing at a slow rate. Not to mention in the first place that VC isnt necessarily tied to wallstreet (or is it?) i have no clue, just guesses, not something i am trully interseted in</p>
<p>And just to mention, VC salaries are very low, its the long term capitilization that your looking for. A first year can be making 30-40k with a tiny bonus, some upwards of 80k, it varioius alot, but it is long term that your looking for since your taking an equity stake by funding these businesses.</p>
<p>i had earlier thought of majoring in Computer Science
only thing that's kind of scaring me is that i am not gud in Physics...i am still thinking about it though...</p>
<p>
[quote]
A first year can be making 30-40k with a tiny bonus, some upwards of 80k, it varioius alot
[/quote]
</p>
<p>I don't know where you heard that from. Naturally the regional players will pay less just like regional ibanks. Typically VC salaries are roughly similar to starting PE salaries which are comparable to banking salaries. Analysts and VPs don't really have much carry. Its only after you become a JP that you have some carry in the fund itself. Here is a link:</p>
<p>The reason why they aren't in NYC is because thats not where the startups themselves are. Tech firms will be in Silicon Valley so it makes no sense for a tech VC to be on the other side of the country.</p>
<p>those salaries have come from various job websites where venture cap firms have posted job positions for hire. Not to mention job articles i have read in the past in business week and various online financial publications. Could these be smaller regional vc firms, possibly, but the overwhelming numbers showed starting salaries, even for some associates in the 30-40k range. But then i saw some in that range, but their bonuses were 70k, some were 5k. I am just reporting what i have seen as. I believe most of these were for pple with a few years of work expereince, not new hires, by the way</p>
<p>Or actually these numbers could be from firms in the london (could be possible) i doubt it, but converting pounds to dollars in that range still wont yield any abnormally high salary.</p>
<p>Base salary should be above comparable analyst salaries for i-banking in the area, probably in the median range of 60-85k.</p>
<p>Bonus salary can either be in the form of straight cash bonus target, anywhere between 35k and 85k, or an arrangement with some portion of carry. Some firms have an "associate pool" that is based off carry. Co-investment on specific deals is also sometimes possible with small firms.</p>
<p>
[quote]
Oh another question....Why are a lot of the venture capital firms NOT concentrated in New York? I imagined most of them would because it's like the financial capital of the world.
[/quote]
</p>
<p>And yeah, just like the other posters mentioned -- its the fact that the new start ups are all being done elsewhere.</p>
<p>
[quote]
those salaries have come from various job websites where venture cap firms have posted job positions for hire.
[/quote]
</p>
<p>I would like to see that. And no its not because of British VCs (their salaries are actually comparable to USDs....they get paid less pounds).</p>
<p>You will probably want to check this:
<a href="http://www.vccomp.com/results.htm%5B/url%5D">http://www.vccomp.com/results.htm</a></p>
<p>Remember that during 2002-2003 VC basically dried up (after the bubble). Even then the analysts don't earn 40-50K lol. They made 76 average base with 25 average bonus (and this is including some small regional shops with <1BB AUM).</p>
<p>My brother is in vc. He was an econ major undergrad and his company (Lucent Venture Partners) paid for his grad work, which was called a Masters in Financial Management or something like that (they wouldn't pay for the full MBA).</p>
<p>While Lucent was rolling in money, he lived in Palo Alto and Amsterdam. When the bubble burst, he was placed in Boston. When they started returning unused copy paper for credit, he got out. He now works at a small, Boston fund that is doing well.</p>
<p>Right after went sour, he was still making a six-figure salary and he was in his late 20s.</p>
<p>mahras, i dont remember the site, i think one was efinancial and most of the others were recruiting sites, and the few i used were rare, because if you have gone through most of the big head hunter sites, they dont list salary, only whether it is market abover or below. </p>
<p>I will go find them later, i have any ebay portfolio to put together becuase i am picking up another job. WOOHOO, 2 jobs and 16 units of classes this summer</p>
<p>Those were probably rather small firms then. You are better of using VCComp which has a rather large number of participants being surveyed.</p>
<p>Best of luck with the jobs and the classes.</p>
<p>Just go into IB or something and work for a couple of years and save your money up. Then, go and get an MBA and work for another five to ten years and then you can start your VC firm and actually brign in the big bucks, but don't forget you will need tons of dough.</p>
<p>Heh nice way to make it seem easy.</p>
<p>Hey what are the most prominent venture capital firms for different industries? Thanx :)</p>
<ol>
<li>How does one go about becoming a Venture Capitalist?
Most of the them are entrepreneurs themselves. They are part of a startup or founder of a multiple businesses themselves, most likely with a few failing</li>
<li>If a venture capitalist works for a firm, is he/she investing the firm's money or his/her own money?
Both, a lot tend to put their own money back into the fund</li>
<li>What exactly do they do?
The provide capital in exchange for a share of the company. They also provide industry contacts and executives to assist the company to help ensure success.</li>
<li>How much $$$ do Venture capitalists really make?
Most make money in the six figure range, some in seven, and a few in eight.</li>
<li>Does one need experience in a specific sector (other than financial services) to break into venture capital? In other words, does working in financial services make breaking into VC harder?
Many only like to invite people who have successfully started businesses themselves to join, other then a small analyst pool that comes from college graduates that have completed a two or three stint at a investment banking or strategy consulting group.</li>
<li>Do their jobs involve lots of travel?
No. Most VC firms only work with firms locally with maybe 10% from a distance. For the most part, the start-ups come to them and do presentations to them. The VC themselves evaluate from their hq.</li>
</ol>
<ol>
<li>yes, alot of people that are hired are former execs that worked in a certain business sector that corresponds to the third party investing that venture capitalists do. If you go to school in northern california, it isnt the hardest thing to find a job at a vc firm, yet its not the easiest thing either, and nor are you garunteed to get in with a profitable firm.</li>
</ol>