Pros/Cons for joining a small, new VC

Couple of things.

1. 30-40k is way too low, even for a 50M AUM fund, unless you're in an extremely low COL city. They could at least base you at 60-70 at the low end. Given a 2/20 structure they should have $1M a year to pay overhead, after rent and other misc costs they should at least have 750k to go around. Partners should be taking a "minimum" salary and their real payout should be in the carry they earn. I'd push them hard on why salary is so low.

Even if they promise a big bonus, they've never had an associate before, so even if they claim you OTE would be 100+k after sorucing deals, who knows if that would be true.

I'd push them for 60-70k at a minimum with a 50-100+% bonus that is based on some clearly defined goals(you source x deals, firm invests in x companies). Next thing is carry

2. If the salary is going to be low, you should have significant carry in the fund, a few hundred basis points at least.

But don't let them promise you carry in lieu of salary. Carry is a long long term benefit. If the fund is just starting you'll have to invest in a business, let it mature, hope for a good exit, hit the hurdle rate, and then you'll get carry dollars and that carry might even have some vesting structure around it as well. Point being, don't expect to see money from carry for at least 3-5 years, maybe longer. If you're going to be a lifer at this firm thats one thing, but considering you could easily do 2 years and move to another fund, that carry might be worthless.

3. In general, there are tons of startup VC funds that flame out. VC is a tough game and its tough if you're going to compete in the Seed/Series A space, which has become extremely over crowded. I'd make sure you have a lot of trust in the partners that they're extremely well networked and have good chops on both the financial and operating side of things.

I'd really probe them as to what makes them different from every other early stage venture fund out there. It's pretty easy to write a check, its extremely hard to consistently produce good returns and continue to raise funds. Maybe that won't matter if the celebrity backer of the fund is willing to continuously give you new capital, but while we're on the topic. I'd also try and learn more about the funding sources for the firm. If they raised $50M from some brand name LPs that would be much more impressive than raising from a single rich guy.

With all the being said, if venture is your long term plan and the partners have great track records in the Venture/PE world, I'd go for it. Venture is a networking and apprenticeship game and the earlier you get into it the better. Be sure to do your diligence though and I would be hesitant to take so little money.