Once a potential deal is secured at a venture capital firm, an analyst performs the necessary due diligence for a successful deal.
A career at a venture capital firm can be rewarding and lucrative. Most venture capital careers fall into five main categories. These categories are venture partner, director, associate, analyst, and entrepreneur-in-training. Of course, there are many support roles in the venture capital industry, including administrative, accounting, and human resources assistants that help top executives and venture capital firms run efficiently.
Venture capital can be used to finance the manufacturing costs of a new business.
Typical venture capital careers begin in the financial industry or in an operating role at a start-up company. A venture partner is usually the one who makes the decisions about the investments made by the venture capital fund. This may involve investing in a new company. The venture partner typically invests a lot of money in the venture capital fund and is a general partner. This role is typically that of a top-tier investment professional.
Directors are the next level below a partner. A director is typically a mid-level investment professional who has experience in the venture capital industry as an associate who works to bring successful venture capital deals to the firm. The top tier in venture capital careers is a role just below a partner in the firm. This is called a partner tracking position, which means that if someone is in a privileged position, they have the opportunity to become a partner in the company. The director of a venture capital firm typically has a master’s degree in business administration (MBA).
The most common entry-level positions in venture capital careers are associates, those who deal with providing business for the venture capital firm. In general, associates who are in the partner path tend to be those who are hired at the post-MBA level. Bringing a successful business to a company will generally accelerate an associate’s career. The entry level member position is a junior member. and the senior associate position is senior associate. Advancement in the associate position is generally based on original business performance.
Once a potential deal is secured at a venture capital firm, an analyst performs the necessary due diligence for a successful deal. Due diligence includes extensive research and analysis of the prospective company and its market. The analyst will typically make financial projections based on the due diligence performed on a potential deal. This helps to assess the feasibility of the potential investment and the time it will take to recover.
Many venture capital firms hire an entrepreneur for their training. An entrepreneur-in-training is an expert in a particular industry hired temporarily by a venture capital firm. The typical time an entrepreneur-in-training is with a venture capital firm is six months to a year. This position is considered a consulting service. Not all companies offer this position, and the availability of this position depends on the industry of the prospective investment business.