How does the Compensation for a 1st Year Analyst at VC compare to Other Buy-Side Positions?
Just curious, I saw a video that said that VCs are usually paid the least, but Im interested to hear ir from actual Analysts. Should I try to break into VC right out of college or should I work on pivoting to VC through say Management Consulting?
Junior pay is low. Better to get strong branding at MBB or BB and then pivot to VC
Source: I’m currently interning at a VC
Does this typically mean pivot to an associate level position at a VC? As in instead of aiming for VC Analyst you just go get skills and TC from a BB then lateral into the associate position at a VC?
From my experience the past 3 months interning at a VC
It’s going to depend on how good of an investor you are. If you’re a natural investor & can identify opportunities, you’ll rise to partner with time & building a network.
There is less modelling & technical financial work involved in VC. You need to have an eye for figuring out which startups will 3x,6x, etc in the next 5-8 years. You need to have the network to source those deals & be able to negotiate the terms.
Branding / story-telling is big in VC. So you’ll want to have a strong BB brand backing you before entering the industry
gotcha, sounds solid.
Honestly… not worth it. You won’t learn good finance skills unless it’s a later stage fund and you likely won’t get promoted up to partner or be able to exit to a tech startup in a great position. Best bet for VC is top tier TMT group to growth equity and then into VC ideally at the principal/Venture partner/equity partner level. Other very common routes are exits from tech product management to VC or big law (supporting startups/VC funds like with term sheets, etc)
Source: in tech and I’ve seen many VC analysts change funds like 2-3 times and they’re still analysts getting paid like 65-75% base of IBD analysts but without fat bonuses or carry.
Besides VC analysts and associates are mostly glorified venture admins. Either take the time to learn traditional finance and do the IB>PE>VC route or do IB>Tech >VC
Is IB necessary to be able to pivot to VC or can I go MBB and then pivot to VC? Because I know that MBB is the other place I want to go out of undergrad if I can help it.
Recently secured a VC offer all in comp between 175k-200k depending on bonus. Bump in base from street AN1 pay is meaningful.
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