Canada Venture Capital
I noticed that there isn't a lot of information on the VC sector in Canada on this site or anywhere. I first wanted to post here to ask if anyone has any idea on VC compensation in Toronto since I am going to be pursuing an MBA in Toronto next year and I want to stay in the VC field once I graduate. If anyone has any useful information on the VC market in Canada (top firms, culture, compensation, recruiting, etc.), it would be great, especially if you worked/work in that space.
I would appreciate any help, there is little information on the subject out there so your input on this would be extremely valuable.
I don't know specifics about VC, but I do know that PE comp in Canada is much much lower than comp in the US (like 25% cut before even doing USD/CAD conversion). I assume the comp is even lower in VC. At the end of the day if you really love VC then it doesn't matter, but if you're chasing money VC in Canada probably isn't your best bet.
I don’t know the exact figures, but at the higher level like the pension funds (OMERS/CPP/OTPP/etc) you are likely to be doing pretty well. For the VC/Growth Equity side there are really only a few players like Portag3 and CBGF and my understanding is they have pretty solid comp too.
Buyside pays less than Sellside in Toronto in general, but you are realistically being paid in having more time to yourself.
I don't know how true this is. I have a good amount of friends who are associates + in Toronto within IB and they're chilling. I think that comes from the fact that products across the Big 5 are pretty homogenous. Service offerings in the US can be more differentiated especially with more speciality advisors so competition creates more pressure at the senior level. Have you talked to guys at say, Greenhill/Evercore/Scotia in Toronto? They're not breaking their backs nearly as hard as guys at HL/Guggenheim in NYC at VP
I wouldn't necessarily say buy-side at a pension in VC/PE is any less or more time consuming at a more senior level. I think it just comes down to what you enjoy doing more. If you hate the salesy, client-grubbing nature of IB work, then maybe you want to go buy-side. Similarly, you might dread IC-politics or the long-term aspect of PortCo management, and the thrill of finance comes to you in the form of getting deals consummated - IB is just better then
I was under the assumption that the Greenhill guys are getting crushed per the chatter I've heard amongst banking friends not at Greenhill. Is this not the case? I've never asked or heard from anyone at Greenhill directly.
Lmao Greenhill gets crushed. Poor management too which adds gas to the fire
You probably start as an Senior Analyst with maybe 70-80K base and 100-110K all in or Associate (if you have very relevant experience) at slightly higher. VC firms comp vary from person to person even with the same title. Above numbers for Montreal, probably higher for Toronto.
Source: Interned at VC firm
What were hours like for ft senior analysts / assoc. if you don't mind me asking?
like 9-5 / 9-6 M-F. Sometimes it can ramp up during fundraising. But in general diligence is very light in early stage VC.
But one thing to note is that the intensity during those 9-5/9-6 is pretty high. In PE/IB, you get lot of downtime during the day (e.g. waiting for comments), while in VC I interned at, your day is just jammed packed with meetings and things to do. Can be pretty exhausting.
Very limited VC opportunities in Toronto, but one of the best firms in the country is Georgian Partner. I would personally avoid working at a pension fund.
Why would you avoid working at a pension fund?
It’s personal preference. I found that pensions do a lot more co-investments as opposed to having their own proprietary deals (means you will likely not be in the driving seat on deals, as more sophisticated sponsors will be ones leading the analysis). Second, pay profile as you progress is not as lucrative as other comparable roles.
However, for the most part work life balance is better than in banking and places such as Onex or Altas.
Anyone have comp numbers across Canada? I'm in the later stages for two shops ($50 and $250mm in AUM) and want to get some references for negotiation. I'd be coming in at Associate with 2-3 years of experience.
Also, would carry be a possibility at the smaller shop? Could make a lower salary more appealing if that was the case.
I believe Real Ventures does around 80-90 base, with total comp flowing through to around 120 for an Associate. They also do carry. I’d discount that a bit for a fund with 50M AUM, though it makes more sense to ask for carry, and I’d even ask about co-invest rights
Not huge, I'd say there are only a handful of Canadian funds worth working for. Some mentioned here - Georgian Partners and Portag are top notch. Most of the others tag along with bigger funds. I think the BDC IT Venture Fund is the largest in country but they mostly tag along.
It saddens because tech is BOOMING here. The universe of (IMO) high potential software and cool tech companies in Canada is immense, even more so outside the Toronto and Vancouver hubs. You'll see a lot of US VC and growth PE $ flowing in here because of the shortage of cost-competitive early stage capital.
Doesn't help that (most) Canadian VCs are immensely risk averse and their DD processes are inflexible, checklist driven and like pulling teeth versus the generally more thoughtful and targeted processes for US capital.
Your time to shine @hoeofhoankiem
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