VC Compensation Check
Just got an offer to join an early stage VC after my 2 year analyst stint is finished.
Cash comp: ~$180k
Market: Tier 1 (NY/SF)
Carry: Nope
YOE: 2
How's the rest of your guys' compensation in VC? Is mine market?
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That actually seems above market to me.
Really? Believe most other funds are paying $200k+?
I would say yours is right in market. Follow up question: do you have raise next year? how much of the cash comp is guaranteed (base vs. bonus)
Base $120. Prob early stage of next fundraise a year later with a close maybe a year after that? Why does this matter?
Curious how you got this offer/what the recruiting process was from banking? Is there anything you did throughout your banking stint which you felt helped you out?
See my response below.
Regarding standing out, don't think so. I am at a well known TMT boutique and have some late stage VC M&A/IPO/financing experience but I'd imagine so does any other tech IB analyst
That's actually very good comp, am curious as to your path to that role
as am i
Wow, I thought I was underpaid especially considering first year IB analysts are hitting $200k+. Anybody have any idea on comp trajectory? Kind of annoyed that I'll make less as a VC associate than I did as a first year analyst.
Nothing special about my path in - Currently a 2nd year analyst at a well known TMT boutique. HH reached out with role, I went through the process and had an offer around 2 weeks later
Not sure on longer term comp trajectory but usually VC associate expected to take a *somewhat* significant comp cut, which I guess might be accentuated by the recent pay bumps. Nonetheless, and again I could be wrong, I though something around 150-175 was market for first year VC so 180 is certainly strong in my book. Again, could be wrong, but I digress. VC doesn't pay juniors like PE does
Very interested in VC after IB and would like to hear a bit about your recruiting process / which funds were most receptive to IB analysts. Would you be willing to PM me if I come off private or vise versa?
Feel free to ask questions below and I can answer so others may benefit as well.
Regarding which funds: late stage VC funds/quasi-growth funds are most receptive to the IB skill set. As you can imagine, late stage funds are a lot more quantitative focused on the DD side so the IB skillset helps. Early/mid stage are a tossup, you won't get any points for being an IB analyst, but you won't lost any points either, if that makes sense
Thanks so much, really appreciate it.
1. Were you in tech coverage? Is this a big advantage?
2. how did your recruitment process go with early stage funds and what was the timeline? I'm assuming less structured, no headhunters, more network-driven.
did you reach out cold or rely on warm connections / referrals?
3. Did you have prior VC or startup experience?
4. what was your rational for early vs late stage?
1. Yeah I was. I think it does help in that it shows you are interested in tech. What I'll say though is some VC firms who are sector focused look for juniors with coverage experience in that sector. So say you are recruiting for a proptech focused VC fund, they will view REIB experience positively.
2. In general that is true, but in my case, I had a HH reach out about the role and I went through them. However, most VC jobs are network based and often require an "it factor". It's not as simple as reading M&I 400 guide and showing up - I think junior VC roles require "something else".
3. Yeah sort of. I co-founded a startup in college which was subsequently sold for a relatively material amount and I think that helped me stand out a lot
4. What's great about early stage is that you can be more intimately involved with portfolio companies. Late stage company investing is a lot more process oriented and many times is banking 2.0 so you don't get as much of a close experience of actually working with the founders and management teams while that's an everyday part of the job for early stage roles
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What is early stage VC comp like in general?
Yeah it would be good to get some data points here. I don't know any early stage comp aside from my own
Thanks for this.
Could you talk a little bit about what your interview process was like?
Coming from banking what kind of technical questions did they ask you if any? Or was the technical component addressed via a case.
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