The Venture Capital/Private Equity industry, despite the dot-bombs, is still alive and kicking. According to industry insiders, a number of traditional companies, such as Disney and Corning, are creating private equity groups, and numerous boutique and small- to mid-size firms continue to emerge, which translates to opportunities for you, now all you have to do is find them.
Venture Capital Firms raise money, sometimes as much as several hundred million dollars, which will go into funds. Start-ups will then give shares of ownership in return for the large amounts of capital. Ideally, when the startup goes public or gets acquired, the investment is cashed-in for huge profits. Typically, the VC Firm will keep 20-25% for themselves, and distribute the 75-80% to the original investors. If the startups go nowhere, then investors will see no residuals from their investment. As you can see the potential for rewards is high, but the risk is just as great. But you're not scared, in fact it kind of turns you on because you're a high-stakes player, and you have the right combination of business/finance experience to make an impact in this industry. Let Employment Authority help you find the right companies to target for your search.
Life in the Venture Capital/Private Equity Industry:
You will work closely with your colleagues to decide how to invest large amounts of capital into firms who you believe have the ability, correct management, and vision to make it. You have the business skills and financial understanding as well as the communication skills to create complex reports to explain and to get buy-in from your managers and investors. While you have a small intimate group of colleagues and managers to work with, if you say the word "micro-management," you'll get a blank stare thrown back at you. You are on your own, and employers hate having to tell you what to do, but that's probably why you love this industry so much. You are an ambitious, self-starter who enjoys thinking "outside the box". Naturally independent, you have the skills and ability to go far in this industry, and you are confident of that. While it is hard to break in, your persistent dedication and ability to create opportunities will allow you to land the job of your dreams.
Your upward mobility depends completely on your firm's partners, and there is no set career path to follow, though the ultimate reward is partnership, which most industry insiders tell us can take anywhere from five to 10 years working about 60-70 hours a week. The rewards are high, with salaries ranging from $50,000 - $100,000 with bonuses that are generally reported to exceed your salary.
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Myth I'll be working with clients from day 1. |
REALITY Because your office is usually small, if you're lucky enough to land an associate-level job, you'll likely have a lot of grunt work to handle for other more seasoned VCs, but this opportunity is important for you. You need to watch the politics and interactions of the more successful VCs, and learn their techniques and skills. Build trust, because without it, you will never move up within that firm.
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Myth It's impossible to break in. |
Employment Authority The reality is that it is difficult to break in, but Employment Authority can help you create your own opportunities to break into the VC Industry. In a number of cases, VC firms may not hire until the right person with the right skills applies, this person could be you.
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Myth Everything I need to know about the industry I learned in B-School. |
Employment Authority While going to B-school gives you substantial skills and knowledge, and though you may have worked as a successful consultant or I-Banker, the reality is that no one can teach you this trade, you simply just do it. It's intuitive, but it is built on the same fundamental skills and knowledge that you learned in B-School.
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