VC Hours and Work/Life Balance? Will my life still suck?
Currently in undergrad, and have read countless posts last few weeks about how IB hours are something you can't understand until you experience it, and that they suck way more than you'd expect. Also that PE is only marginally better, maybe 70 hours/week instead of 85-80.
Is this also true for VC, or does VC have better hours? I'm hoping to go into tech IB and exit to VC, and I'm fine killing myself for 2 years if it gets better when I exit banking. But I'm a CS and finance double major, so if I have to kill myself for my whole career in VC too, I don't know if it's worth it, and I might try to switch to tech.
Really depends on stage of fund (early vs. growth / late stage) and "reputation" of firm. The Associates at the top late-stage / growth equity funds often work very late hours because their deal flow is top notch and they see every opportunity. VC is also a role where ideation starts from the bottom. Associates are tasked with building thematic market maps and are constantly sourcing / finding new deals in their spare time. Generally speaking though, the hours are less than traditional private equity. Processes and time to term sheet in VC is way faster than private equity and sometimes decisions to move forward with a deal are made within weeks vs. months in traditional PE. I typically work 40 - 60 hours per work with no weekend work. If there is a live deal, that number is more like 60 - 80 hours.
Are you at an early stage vc? Any chance you know what lifestyle is like at the big growth funds? I know you said it can be bad but some context would help.
I'm in late stage / growth equity at a private equity platform (i.e., KKR, BX, Advent, Bain, etc.).
In addition to the number of hours, you may want to also consider how stressful each hour worked is. VC firms are typically founder friendly and this can translate into how they treat their employees (i.e. better than PE). care1g can you comment on this?
Again, at any top firm, there'll be plenty of deals to look at which will absorb a lot of your time. The way in which you handle the workload will determine if you are stressed or not. To your point, there are chill senior professionals and not chill ones, it really depends. Culturally, VCs tend to have less intense people and view you more as a collaborator, whereas in traditional PE many Associates / VPs are viewed as "leverage" in freeing up cycles for the Principal + MD.
Lifestyle at many early stage VC firms is exceptionally good. Your hours will be good, your flexibility will be good. You are tasked with doing things by yourself and will not have review, and because of the high number of deals you work on, you will not have time to diligence every last little bullshit item, so you generally only stick to the work that truly matters. You will keep your own calendar... etc. It is pretty great.
How do you get into early stage? Do IB analysts exit into it, or mostly previous founders?
Worked in both pe and growth equity before. I would say I typically work 10 hours less in growth than I would in PE for an average of around 45-55 hours per week. But during live deals, it's not uncommon to work until 12/1 pm every night.
What size of fund?
Around 3-6B aum, 10-20 ppl team
even if hours are bad, you will be passionate about the work compared to IB. makes a huge difference in burnout
Also curious, Any insights on VC immediately out of undergrad? I've heard the usual "It's impossible/entirely luck based" and "Very hard to join with opportunity to advance up the ladder out of UG". Are there any other/ contrary insights. Thanks
I've seen some successful people who did this; however, maybe this is a bit more unique to the Canadian VC landscape.
Getting VC out of undergrad is network-based with a grand heap of luck. Most VC funds are very unstructured so your best bet is to be on someone's mind already when they're looking for a junior. Remember, most of the time to get a job as a VC associate, you have to do the job of a VC associate already which means actively networking with entrepreneurs & funds, being active in a startup ecosystem, and developing a view on investable trends (+ having access to deals to take advantage of it).
Personally, I don't recommend VC directly out of undergrad. There's a lack of direct training that makes it difficult to develop & hone in on certain skills like modeling, presentations, & report writing. That said, every fund is different especially at the VC level but if coming in from UG, I would be very critical of what kind of senior support/mentorship you would get.
Appreciate your insight. I've been talking to many in the startup/venture area (startup ceo's/vc partners). Is there anything else I should be doing in terms of technicals (Already in all mainstream finance/financial modeling clubs + own research on the side) or any other type of professional I should reach out to? Again extremely appreciate your any wisdom you can offer.
The way I see it, you go to VC so you can have a more interesting "live to work" lifestyle. If you were to do the bare minimum, yes the hours and lifestyle are definitely better than PE but the career trajectory flatlines in a worse way than other finance careers because the VC career path is so network-dependent.
Work in VC can include befriending entrepreneurs and having dinner with them, attending panels about technology trends, going to a launch party for a new product, etc. If you include these elements then you can easily have hours comparable to PE but the work itself can feel more like a lifestyle if you enjoy it.
My only major gripe about VC and the startup ecosystem life is that comp is relatively shit compared to the rest of the finance realm. Unlike my PE friends, I ain't buying a rental property or flexing a Tesla anytime soon lol
thanks, this is helpful
Can you give some general comp ranges? I’ve looked online but curious about your experience.
As low as $50-60k for a small seed fund and up to PE-level comp ($150-250k) if you're at a pretty intense shop. Entry level, expect to see most be at $75-100k.
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