Those like Nicole DeTommaso, a senior associate at New York–based Harlem Capital, also advise would-be VCs to think about the security of their job when it comes to the firm they’re looking into. “This is very similar to what VCs do when they can’t get an introduction to a company they want to invest in.” “If you are looking to work at Fund X, but don’t know anybody that can introduce you to a partner there, work your relationship intelligence muscle to build a relationship with someone who can,” Siniscalco says. Warm introductions can help get your foot in the door for an initial phone call, according to Lotti Siniscalco, partner at Emergence Capital, who says that every time a close friend or founder introduces her to someone who is interested in the industry, she will take the call. Lionel Foster, who was hired as an investor at real estate technology firm Camber Creek in 2021, suggests asking for informational interviews to learn about different funds, how they categorize themselves, what their missions are, and their varying approaches to deploying capital. Some funds will try to lead rounds and take a hands-on approach to their portfolio companies, while others won’t take board seats and prefer to take a back-seat role in a round. Many funds are sector-specific, meaning that investors devote all their time to certain industries, like gaming, green technology, consumer, or A.I. It may sound obvious, but it’s important to know that not all VC firms are created equal: If you’re looking at an emerging fund manager, a growth-stage firm, or an established early-stage firm, the job and experience (including the experience required beforehand) can deviate dramatically. Industry newsletters like Term Sheet will keep you abreast on deal flow and the latest news in the private markets. Reading investor Substacks and blogs can be helpful, too. Insiders suggest following podcasts like 20VC and reading books like Peter Thiel’s Zero to One.
#AVERAGE VENTURE CAPITAL SALARY HOW TO#
Getting started: How to research VC firmsĪ good first step is to saturate yourself in all things venture capital to learn as much as possible.
Below, we’ve broken down how to break in. We interviewed or fielded insight from 11 insiders-ranging from general partners to people currently interviewing for entry-level roles in venture capital. Venture capital has suddenly become a buzzy field-though it can feel intimidating to break into, particularly for women, people of color, or anyone who didn’t graduate from Stanford University.įortune wanted to shed light on how to get your foot in the industry. Billions of venture capital dollars have sloshed into startups, and there are too many funds to keep score, many of them with only a handful of people on staff. Since then, the tech industry has exploded. “Twenty-five years ago, being an entrepreneur wasn’t a real career choice…No one in their right mind would do it, and there were maybe only 40 active venture firms,” says James Currier, one of the founding partners of early-stage venture firm NFX, who has cofounded companies like Tickle, Wonderhill, and IronPearl. Smaller funds, in turn, are likely to translate into smaller management fees-which typically equal about 2% of the capital limited partners pledge to a venture fund.Even the idea of a “career path” for venture capitalists is a relatively new one. One big reason: Raising new venture funds as big as those in the recent past, and doing so as frequently, is likely to get much tougher in a bear market. Partners are typically in the middle tier of venture firms in terms of compensation, below managing general partners and above associates and other staff.īut the days of broad increases in pay could come to an end after a record 13-year bull run, which saw U.S. Median cash pay for a partner at a VC firm, including base salaries and bonuses, rose 10% to $928,000 in 2021 alone, according to Holt Private Equity Consultants, which publishes an annual report on compensation in the private investment sector. Pay for venture capitalists has increased steeply in recent years as venture funds have exploded in size and nontraditional investors like Tiger Global Management have invaded their turf, bringing with them rich compensation packages for their investing staff. But when will venture firms start tightening their own belts? It’s hard to find venture capitalists right now who aren’t telling their startups to tighten their belts.
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