Pivoting to VC
I've been working on the equities side for a little under five years now. Recently I've found my work to be unfulfilling due to a lack of social interaction and also because I would really like to help build something, rather than allocating capital from A to B and back to A. Location is also a factor.
I know some of these questions are googleable but I find many answers to be outdated or limited in their scope. Any advice would be appreciated.
- Is going from Equity Research at a LO to VC viable?
- Would it make sense to join a startup first and then look at VC down the road?
- What does comp look like for associate and senior associate level. What is comp a derivative of? AUM/headcount?
- How should I go about networking? Is networking a must have, or a nice to have.
Transitioning from Equity Research (ER) to Venture Capital (VC) is definitely viable, but it requires a strategic approach. Here's a breakdown based on the most helpful WSO content:
Viability of Moving from ER to VC:
Joining a Startup First:
Compensation at Associate and Senior Associate Levels:
Networking: A Must-Have or Nice-to-Have?:
Additional Tips:
If you're serious about the transition, consider leveraging resources like the WSO Networking Guide or VC-specific interview prep materials to refine your approach.
Sources: https://www.wallstreetoasis.com/forum/venture-capital/corporate-venture-capital-vs-independent-venture-capital-firms?customgpt=1, Q&A: 1st year VC analyst (~750M AUM), Breakdown of Post-IB Exit Opportunities, Venture Capital Salary versus BB and Private Equity, Switching from 'Industrials' to 'Restructuring'.
Hey trying to make the same jump. Hit me to chat
Sounds like you’ve hit the classic “capital allocator existential crisis.” You’re not alone—plenty of public markets folks eventually realize they’d rather help build than just bet.
That said, I'd really dig into the following question: Do you want to build or do you want to do a different type of betting? The former would have you starting or joining a company, the latter is just another form of capital allocation.
To your questions:
1. Is LO Equity Research → VC viable?
Yes, but it’s not a straight shot. Growth equity would likely be an easier pivot since your skill set aligns more with evaluating later-stage companies. Early-stage VC is more about market intuition, founder access, and deal flow—stuff that’s harder to learn from public equities.
2. Would it make sense to join a startup first?
If you want to be a great early-stage investor, yes. There’s a reason so many top VCs have operating experience—it gives you actual empathy for founders and credibility when advising them. That said, if you just want to get into investing faster, you could try for a hybrid investing/operating role at a venture studio or corporate VC, but again those will be a diluted experience. For early stage, you're best bet is joining a super fast growing company early on and scaling with them to a senior position.
3. Comp at the associate/senior associate level?
Base can range from $100K–$200K depending on the firm. Bonuses, carry, and deal flow exposure vary. Growth equity typically pays more than early-stage VC. Comp is loosely tied to AUM, but at smaller firms, it’s more about how much you can personally contribute to winning and managing deals.
4. Networking—must-have or nice-to-have?
Non-negotiable. VC is a game of access. Cold emails won’t cut it. You need warm intros, industry visibility, and a way to provide value before you’re even in the seat. Write about markets, source deals, get active in founder communities—whatever gets you noticed.
TL;DR:
You can make the jump, but you’ll need to reframe your experience around what VCs actually value. Get closer to startups, build a network, and start thinking like an investor who sources deals, not just one who analyzes them.
This is great and really answered the questions I had. Thank you!
Happy it helped, I was in SS ER -> Late Stage VC -> Founder so it's not impossible but it was a lot of luck.
Perhaps one of the best advice ever. 100% spot on.
By reading your answers below, congratulations, nice journey so far!!
I disagree that you need warm intros. Obviously that can help but I know for a fact plenty of VCs answer cold networking emails? Just reach out to associates and if they like you they can send you up the chain.
That’s fair, but 99% of the people I’ve met got in via warm intros. There are always exceptions but in terms of compounding effort/time spent you’re better off getting one warm intro vs. sending out 100s of cold outreaches.
Honestly, it'll be really hard to get to a good VC straight from LO given that it's been >2 years in a LO. I think you could try getting your MBA, going to a crossover so you can do both publics and privates (and then if you want, it'll be a lot easier to get to a good VC), or lateraling to the privates team at your LO (I know not all LOs have a privates team, but if you see some later stage cap tables it's super common to see T Rowe, Fidelity, Wellington, and others). Those three are the ones that I'm the most familiar with and see most often (Wellington is definitely the most robust of these teams). Also not saying it's impossible, just difficult.
Id aliquam facere aliquid accusamus. Dolorem alias rerum sunt saepe aspernatur possimus fugiat. Ducimus facilis a tenetur perspiciatis aliquam eius aliquid. Enim et perferendis dolores nobis. Cum est ut corporis est. Minima vero est reiciendis ut atque.
Vero qui id quia laudantium deserunt unde. Et tempore impedit facere nostrum. Magni voluptas vel eveniet consequatur et. Quisquam delectus praesentium ea. Placeat aperiam rem est porro voluptates voluptatem.
Delectus architecto nihil quae reprehenderit praesentium officiis quia fugit. Expedita quae nihil eius dolor beatae laboriosam repudiandae. Odit sit ut provident quidem minima omnis voluptas.
Qui perspiciatis magni quisquam autem laudantium. Laboriosam asperiores tempora aspernatur quod earum cum nisi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...