How are the hours in VC?
Hi, I'm currently a college student studying economics in a target school in Brazil. I really want to get into Venture Capital, specializing in Tech, because I find it a really interesting and fulfilling industry. But I'm wondering about the beginning, if I should start with IB ajd transition to VC after round 2 or 3 years, or start with VC right away; I'm considering both money and time in this decision, I know that the compensation in VC is a little bit lower than in IB, but I can't find the hours, are they as big as in IB (80-100 hours weeks), or a little lower since the compensation is lower as well?
Based on the most helpful WSO content, hours in Venture Capital (VC) are generally better than in Investment Banking (IB). A user shared that most VCs work around 50-60 hours per week on average, which is significantly lower than the typical 80-hour weeks in IB. However, it's important to note that hours can vary depending on the firm and the stage of deals you're working on.
If you're considering starting in IB and transitioning to VC, keep in mind that IB hours are much more intense, especially at the analyst level, where 80-100 hour weeks are not uncommon during busy periods. On the other hand, VC offers a better work-life balance but typically comes with lower compensation compared to IB, especially at the entry levels.
Your decision should weigh your long-term goals, interest in the work, and tolerance for the demanding lifestyle of IB. Starting in IB can provide strong technical skills and a solid foundation, which can be valuable when transitioning to VC. However, if you're passionate about VC and can secure a role directly, it might be worth starting there to align with your interests earlier.
Sources: Investment Banking Hours - What to Expect?, Investment Banking Hours - What to Expect?, Private Equity vs Venture Capital - Differences and Similarities, Q&A: 2nd Year Associate at a VC fund - Breaking in With a Fund of Funds + IB background, Management Consulting Salary & Compensation, Average Bonus in Consulting
It completely depends upon firm culture. Nothing is more than IB. I still think it is ridiculous. Might there be a few more intelligent runner-ups that could join, collaborate with more of a team culture, and change numbers for high earners from 900.000 after tax, 90 hours of work, 6x14, to 650,000 after tax, 65 hours work at 5×13
Smaller firms usually have more flexible lives for team as deals are less frequent. VC are more mobile also, not spending majority of time in office. Duties are divided, travel to scout, drop in on portfolio, attend conf, etc. This allows more self judgement. Success is measured by performance, not hours clocked. I have heard though of some shops with extreme expectations for analysts. They get tasked with all DD, plus extra pressure to generate own relationships/industry insight. I am talking about the hottest few spots at new shops run by HotShot Industry Names.
Thank you so much bro, can you just explain something to me really quick?
Are those big salary numbers only available for very high positions, right? What is it like for an analyst per se?
And what are 6x14 and 5x13?
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