Venture capital careers fall into five main categories: venture partner, director, associate, analyst, and entrepreneur-in-training. These roles require experience in finance or operational roles at start-ups, and often involve bringing successful businesses to the firm. Due diligence is performed by analysts to assess potential investments. Entrepreneur-in-training positions are also available in some firms.
A career at a venture capital firm can be rewarding and lucrative. Most venture capital careers fall into five main categories. These categories are: venture partner, director, associate, analyst, and entrepreneur-in-training. Of course, there are many support functions in the venture capital industry, including human resources, accounting and administrative assistants who help top executives and venture capital firms perform efficiently.
Typical venture capital careers start in finance or in an operational role at a start-up company. A venture partner is usually the one who makes decisions about the investments made by the venture capital fund. This could involve investing in a start-up company. The venture partner usually invests a lot of money in the venture capital fund and is a general partner. This role is usually a top-notch investment professional.
Directors are the next level below a partner. A principal is typically a mid-level investment professional who has experience in the venture capital industry as an associate working to bring successful venture capital businesses to the firm. The top tier in venture capital careers is a role that ranks just below a partner in the firm. This is called a partner tracking position, which means that if someone is in a top position, he or she has a chance to become a partner in the company. The director of a venture capital firm has typically earned an MBA (Master of Business Administration).
The most common entry-level positions in venture capital careers are associates – those who handle providing business to the venture capital firm. Generally, associates who are on the partner path tend to be those hired at the post-MBA level. Bringing a successful business to a company often accelerates an associate’s career. The entry-level associate position is a junior associate. and the top-level associate position is a senior associate. Advancement in associate position is generally based on the performance of deals that are originated.
After acquiring a potential deal at a venture capital firm, the analyst performs the necessary due diligence for a successful deal. Due diligence includes extensive research and analysis about the potential company and its market. The analyst will generally perform financial projections based on the due diligence performed on a potential deal. This helps assess the feasibility of the potential investment and the time required for the return on investment to occur.
Many venture capital firms hire an entrepreneur-in-training. An entrepreneur-in-training is a specialist in a specific industry brought in temporarily to a venture capital firm. The typical timeframe for an entrepreneur-in-training is from a venture capital firm six months to a year. This position is thought of as a consulting service. Not all companies offer this position, and the availability of this position depends on the potential business sector.
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