Will venture capital become the better (more lucrative, impactful, work live balance) alternative investment class to work in than private equity?
Hi,
I have VC internships and I don't want to work in VC, which is surprising to some I guess. It just feels like a really hyped career, that rides along tech's growth. In addition to this, I like the idea of a higher salary and bonus, as opposed to receiving carry which holds a lot of uncertainty. I also think private equity is more geographically flexible in the sense that, I don't have to hope I work in an area with a big tech ecosystem, which across the globe, are very few, and most ecosystems are pretty small. I see people graduating from top business schools, to work in VC, and it doesn't make a lot of sense to me. Also, what makes venture capital firms strong, particularly the early stage focused firms, isn't something you can really control. As in, it relies a lot on network, to source top early stage companies. At least that's my understanding.
The positive is that a career in venture capital has less of a negative connotation than private equity so if you ever want to work in public service or something, it might be better in this sense, since you can say "i'm fixing the world through venture capital and tech".
Based on the most helpful WSO content, here are some insights into the comparison between Venture Capital (VC) and Private Equity (PE) in terms of lucrativeness, impact, and work-life balance:
Lucrativeness
Private Equity (PE):
Venture Capital (VC):
Impact
Private Equity (PE):
Venture Capital (VC):
Work-Life Balance
Private Equity (PE):
Venture Capital (VC):
Geographic Flexibility
Private Equity (PE):
Venture Capital (VC):
Conclusion
If you have further questions or need more detailed insights, feel free to ask!
Sources: Private Equity vs. Venture Capital in 2018, Venture Capital Salary versus BB and Private Equity, Private Equity vs Venture Capital - Differences and Similarities, Breakdown of Post-IB Exit Opportunities
It is highly unlikely to be more lucrative than PE in the long run, but as you say it is much more stable. You simply don't see people burning out, complaining about wl balance, or leaving venture. It's also arguably more 'fun' and less serious. As such, there are only very few seats available and they tend to be super competitive. That said, PE is generally seen as a safer choice as it tends to be easier to get into a large brand name pe fund vs. brand name vc fund and brings more optionality and likely higher pay.
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