AWFUL Pay and Career Progression
An associate from my class lateraled to tech VC two years ago from IB and tells me that he's still stuck makings 180k a year and no carry and no clarity on a vp/principal promote so not sure if it was worth saying in Vc. What does the typical career progression and salary lool like over time?
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The dude is only 2 years in. Was he expecting to be a millionaire GP in 2 years? Lol. That being said, if he has no chance of being promoted and he wants to stay in the industry, he should lateral to another fund.
Lol 180K is far from awful for an associate in VC, and if they haven't stood out at the firm in terms of deal flow or connections it makes sense why they haven't been promoted to principal. Bar is much higher for Principal/VP in VC than it is in banking.
Assuming better WLB, that does not seem that bad.
Is it common for VC Associates to get carry?
One of my buddies at MS Tech is going to a pretty big name VC shop as an associate after 2 years and there is a major pay downgrade. I think sub 6 figure base. I think getting operational/corporate experience before VC and returning as a senior, if doable, is a far better path. Growth prospects for juniors in VC are pretty mid.
Good to know.
Would you say IB>PE>B-School>VC also makes sense if you come in above a principal.
Yes, though you may be better off staying in PE, not sure if that experience will translate to VC enough to have you come in at principal level. Most seniors either switch from industry or grow internally
Makes sense. I know its easier to go from PE>VC vs VC>PE, but understand how different the investment strategies are. It seems operational experience is the ideal path.
Yep, thinking more about the reasoning: in VC you are identifying early stage companies often with insignificant financials, you have to be able to recognize and act upon management/product potential, and work alongside firms to help them grow. In PE with more mature targets, you can do a lot more with financial engineering/cost cutting/capitalization strategies/etc to unlock value. Both are valuable forms of investment, but require fundamentally different skillsets in many ways.
Honestly more interested in VC. Is buyout comp higher than vc?
Yea, typically it is, especially at the junior levels. Reason being, VC doesn't generate much return, until it does. Buyout funds try to predictably generate alpha on pretty much every investment they make. I personally know two VC's who pivoted from the engineering side who have made out with many multi 8 figures by their mid 40s. And they seem to enjoy what they do a lot more than the PE guys.
Downside to VC is that perhaps its more cyclical than PE. You need a good eye for what type firms to work for, and from there what type of companies to invest in, because it relies heavily on exponential growth. PE on the other hand you see boring M&A deals and carveouts of old business segments, restructurings, etc... boring but more reliable return again.
Depends on the model. Some sourcing focused firms will cut you a nice check if you find a good candidate and it performs
Depending on the fund, the fund I will be working at gives analysts carry.
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