IB to VC Pay cut
I am a 2 year analyst coming from a middle market investment bank looking to make the jump to venture capital. I found an opportunity to work with a very small VC fund helping to support their platform investments and help run their current startup as well.
They have offered a relatively low number coming from IB (sub 80k base and $10-30k bonus) is this extremely low for the industry? Is it worth the pay cut to work for a smaller VC firm?
Had an offer for VC right out of undergrad for a larger shop (10B AUM). 60k base + 15k bonus, thought that was really low too, but seems like VC as a whole pays a lot less.
Jesus christ that's low, my friend at B4 gets paid more than that
battery ventures does pay low
They don’t even pay their interns. Just awful comp at the lower levels.
Seems about right
For a small fund that seems about right, but you have to start somewhere to get into the industry. I had 2 VC offers when I left a BB as a 3rd year analyst (2007), but I decided to move to a tech-focused boutique IB instead. One offer was a pretty prominent fund, and I believe the salary was around $120k with maybe a $20-30k bonus potential, and the other was more of a hedge fund with a VC arm at $150k salary and bigger bonus potential. The issue is that it was a European based fund, and I would have been their first person on the ground in SF. I almost took it, but I was worried about lack of mentorship and that I'd be a bit lonely and on an island.
How did things workout for you over the past ~14 years, where are those other funds rn?
One of the funds raised one more fund and then hasn't had any subsequent funds. There was a major legal/press issue with the founder of the fund. The hedge fund is still massive...no idea what they are doing in VC at the moment.
I spent about 5 years at the boutique IB and left as a VP about to move up to partner to start a healthcare technology company that I've been running for the past 9 years. We just completed our Series C.
$150k base + bonus in 2007 doesnt sound bad at all? Adjusted for inflation that's like ~$190k base + an additional bonus?
Was a bit lower at the time than most PE opportunities that my friends took. I'd imagine most salaries for these roles are pretty flat since that time and many declined during '08 - '10 and then rose back in the interim. Also remember that pre-crisis it was more of a seller's market from an outgoing analyst's perspective. There were just a lot more PE and hedge fund opportunities back then.
welcome to VC... Breaking into the industry also has intangible benefits such as being able to put VC investor in your Twitter bio or mentioning that everytime you speak in a Clubhouse room LOL
Lol
As others said, welcome to the bottom of the totem poll in VC. If you arent passionate about the firm’s mission you probably won’t find the economics palatable
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