A venture capitalist is an investor or investment professional specializing in the funding of small or startup companies. He or she reviews loan applications and business plans from aspiring entrepreneurs and decides whether or not to fund the business. Venture capitalist jobs are offered by lending firms, banks, and VC firms, although many VCs also operate independently to increase their income potential. Most VCs specialize in high-risk startup businesses, so there has to be enough successful investments to make up for the projected loss. Like other financial services jobs, VC jobs offer excellent travel opportunities, since you will have to do on-site inspections for most clients.
Venture capitalists working for firms earn an average of $60,000 per year. For independent VCs, there is no ceiling on the income, so it's possible to earn in the six-figure range, although most of them start with as little as $35,000.
Job description
Venture capitalist jobs can involve a wide range of tasks on top of, or as part of their core responsibilities. This is especially true for VC firms. The work can include one or more of the following:
- Promoting the company's products and services via several mediums, such as flyers, telemarketing, and online advertising
- Assessing business proposals and discussing them with prospective clients
- Working with a VC team or a group of investment professionals to evaluate the viability of specific proposals
- Setting a standard criteria for evaluating applications, usually based on in-depth market research
- Approving or rejecting applications based on this criteria, and sometimes consulting other VCs for considerations
- Tracking the performance of funded businesses and keeping tabs on gains and losses
- Staying up to date on business laws and industry regulations to make sure your services are compliant
Qualifications
While there is usually no educational requirement for an independent venture capitalist, VC firms and other employers may require a bachelor's degree in business, finance, management, or any relevant field. Experience and qualifications can also help your chances; most companies look for at least one year in similar financial services jobs. You may also need an MBA or further education if you're after eventual promotion.
