Being the only associate in VC
I've been interviewing around with several VC shops - it's been tough to land interviews, because many of the best firms are extremely top-heavy, whereas many PE firms are bottom-heavy.
The question is this - I've received two offers, one from a firm with 3 associates, and one where I would be the only associate. For those that have worked in PE or VC, what are your thoughts on the situation? Both firms are equal reputationally (and both in SF/Menlo), so I'm most concerned about the staffing setup. Here are the pros and cons I see for being a lone associate -
Pros: Great exposure to partners, sit in on all meetings, get the chance to be involved in everything and likely move up fast.
Cons: Lack of social stimulation from others my age around the office. Potential to get dumped on by all the partners (IB-style) as they realize they now have someone to handle their grunt work for them.
Agree? Any other thoughts or experiences? If you don't feel comfortable sharing publicly, please PM me.
Hey, Do you mind telling what your background is like ? I want to break into VC too and I'd love to have an idea.
I recently joined a start-up VC and became their first associate. Coming from a BB bank it was definitely a different environment. I agree with your pros. I don't think being dumped on by the parters is a con although it is true. The biggest thing I missed was the social life. I was based on NYC and was going out at least 3 times a week with friends my own age.
On the contrary, the experience has been incredible. The partners view you as one of them because they're not used to sourcing grunt work. I listen with them to several new business ideas each week. They have connections to CEOs, government officials, scientists, etc. and I get to interact with them all. Expectations are set high - as an I-banking analyst I could just be comfortable sitting in at a meeting. Now everyone expects you to be part of the conversation/engagement and provide valuable feedback afterwards. Some days I go back and forth with a company's director of business planning on the phone all day as we dig through models, market research, figure out who to contact, etc in an effort to help their company gain market share. As for your social life, you definitely don't have the collegial work environment. But there are plenty of social interaction - just with a much more mature crowd. Wine and cheese receptions, industry conferences, hotel parties, lunch seminars - schmoozing is key in this industry and believe me, you'll get plenty of opportunities to practice. You also get involved in local VC and angel networks, and each of them have their own gathering/outings.
I guess I'm talking more about VC in general rather than being the only associate or one of 3, so kinda sidestepping your question. 3 associates is not a lot, so chances are your experience won't be THAT different - just go with whichever one you enjoy most. You'll still get plenty of exposure at both, and your work social life with 3 associates will still not be anywhere close to a BB analyst program (not sure what your background is).
The only thing that does stand out though is your exposure to all deals. Because VC is about innovation, all deals tend to be very interesting, and as the only associate you never have to worry about "missing out" on what could be the next big idea.
Hope that helps.
Thanks dcheva, that's definitely helpful and good to hear. I'm going to PM you one or two more questions if you don't mind.
Also for those reading and curious, I'm coming from an M&A analyst program, but have some "extracurricular" stuff that's a bit more techy.
captk -- My current shop is similar to the ones you're describing. There is nothing wrong with being the sole junior guy and everything described above is true. You'll also get the intangibles where the senior guys look out for you and take you under their wing because you are the only one. If you're interested in b-school, it's likely that you'll have lots of great recommendations by those who take a liking to you.
As for the grunt stuff, I don't think the grunt work will be any different for a small group than it would for a big group. We have very, very few associates and we don't do any grunt work -- our back office staff and admins do everything. I suppose it just comes down to firm culture, so don't base your decision on this.
~~~~~~~~~~~ CompBanker
I interned at a VC that had 1.5 associates (one didn't do much and eventually left) and it definitely has its ups and downs. You are the only one when stuff needs to get done and partners generally aren't too likely to stay, with that said, you are exposed to everything, every deal, every call, every conference.
When all is said and done, there is going to be very little difference between the two shops you mentioned. Just go with the one where you felt more comfortable. If that is equal, take the one that offers more money or has nicer perks! Good luck with your decision.
Regards.
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