VC to Hedge Fund

What is the chances of starting in VC and lateraling from there into HF? Assuming that the person attempting this lateral is hard working, technically oriented, etc.

I'm interested in both and unsure where to take myself given my opportunities

 
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Market (HF) work versus Deal work (VC) requires different set of investment process, due diligence and risk management. At the junior levels the work is likely the same, revolving around fundamental research and modeling and then moving into idea generation and deal sourcing as you move up.

The type of knowledge required will also differ, with VC needing more specialized knowledge, given the types of risk involved in this stage of funding.

The lateral from VC to HF is ideal if it's a VC focused on tech, healthcare or consumer discretionary, especially true for tech and healthcare.

HFs, at junior level, are friendlier towards pure finance generalist, though it's starting to change nowadays where industry specific experience and knowledge is needed to invest in sector focused HFs.

VCs also tend to be less volatile and offers higher job security. HFs are at the whim of the market daily, but a solid shop should offer good progression if you do well.

Position management is also very different. In VCs, this can be hands on operational management with the seeded company. In HFs, position management, is usually building out and analyzing data sets to assess quarterly earnings and trends.

At the junior levels the skills are interchangeable but as you progress, skills become more specific to the industry.

Ask yourself if you actually like following the market everyday, if so HF is the way to go. If you like latest tech and analyzing thr latest technology or products, go to a VC.

 

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