What is the work life in venture capital?
You might only be in the office for 50-60 hours per week, but you still do a lot of work outside the office, so venture capital is far from a 9-5 job.
Venture Capital (40-60 Hours Per Week)
VC professionals often have the opportunity to set their own schedules, work remotely, and also do something entrepreneurial on the side. The workload can be demanding during due diligence or deal execution phases, but work-life balance is very good overall.
It is a fast-paced, exciting industry and ideally suited for someone who likes helping develop companies from the startup phase to commercialization. Careers in VC are less regimented compared to investment banking and private equity, and VC firms typically hire candidates with more diverse backgrounds as well.
Venture capital funds typically have long tenures, beginning the first closing and running for 8-10 years. Fund managers usually seek pre-determined extension periods (2-3 years for example) to allow them for a smooth exit from all investments.
Venture Capital Associate Lifestyle and Hours
The hours worked vary by firm type and size, but the average is around 50-60 hours per week. That means that you'll be in the office or meetings most of the day on weekdays, with relatively free weekends.
It's quite difficult to find a VC job that's entry level, and even when you do, they rarely go to college graduates – only those with tons of experience and past internships at reputable VC firms seem to get those opportunities.
If you want to achieve the perfect blend of productivity, happiness, and time affluence, a more realistic goal is to work slightly below 40 hours per week. The research shows that even shaving an hour or two off of the standard 40-hour workweek can have huge benefits, both at work and at home.
In any event, I would not recommend wearing a suit, a tie, or even a sportscoat -- vc attire is, as Trevor said, a nice button-down shirt and either khakis or nice jeans. If you wear a tie, suit, or sportscoat, you'll look out of touch. Do tech firms enforce a casual dress code?
How much does a Venture Capital make in California? As of Apr 4, 2024, the average annual pay for the Venture Capital jobs category in California is $94,634 a year. Just in case you need a simple salary calculator, that works out to be approximately $45.50 an hour. This is the equivalent of $1,819/week or $7,886/month.
Q: Why venture capital? A: Because you are passionate about working with startups, helping them grow, and finding promising new companies – and you prefer that to starting your own company or executing deals.
Is venture capital a lot of work?
You might only be in the office for 50-60 hours per week, but you still do a lot of work outside the office, so venture capital is far from a 9-5 job. This work outside the office may be more fun than the nonsense you put up with in IB, but it means you're “always on” – so you better love startups.
VCs are under pressure to generate returns for the businesses and individuals that invest in their startup funds. This has become harder recently as tech valuations have plummeted. Toxic competition, isolation, and the need to maintain a personal brand are also adding to VC stress levels.
In investing, the 80-20 rule generally holds that 20% of the holdings in a portfolio are responsible for 80% of the portfolio's growth. On the flip side, 20% of a portfolio's holdings could be responsible for 80% of its losses.
While many VCs earn their MBA, many others join venture capital firms before getting an MBA. Most pre-MBA hires have worked in prestigious management consulting, investment banking, or operational roles within successful startups or tech companies (e.g. sales, business development, or product management).
Jobs in Venture Capital are notoriously hard to land. They don't come by often, and they are seldom advertised—except in large VC firms, mainly for entry-level positions. Aspiring VCs often don't understand Venture Capital well enough to apply at the right type of firm, or one that is interested in their skillset.
Postsecondary Education
Many venture capitalists have master's degrees in business management, Information Technology, engineering, healthcare management, or even the liberal arts from Ivy League schools or other prestigious colleges. Some have law or medical degrees.
Compensation: You'll earn significantly more in private equity at all levels because fund sizes are bigger, meaning the management fees are higher. The Founders of huge PE firms like Blackstone and KKR might earn in the hundreds of millions USD each year, but that would be unheard of at any venture capital firm.
Health and Well-Being: One of the most significant downsides of working 70 hours a week is the potential toll it can take on your health and well-being. Lack of sleep, stress, and extended periods of sedentary work can lead to physical and mental health issues, including burnout, anxiety, and chronic health conditions.
In 1940, Congress passed the Fair Labor Standards Act. This was the beginning of the 40-hour work week law and established overtime pay for anyone working more than 40 hours a week. From 1940 until recently, 40-hour work schedules have been the standard for all employers with full-time employees.
Interviews for Venture Capital are multi-faceted, testing your business and financial skills as well as your “fit” with a company. To succeed in a VC interview, it is important to not only demonstrate excellent technical skills and strong business intuition but to also exude a passion for early-stage investing.
What is the highest position in venture capital?
In a venture capital firm, the highest position is typically held by the Managing General Partner or the Chief Executive Officer. These individuals are responsible for overseeing the firm's investment activities, setting strategic direction, and managing the overall operations of the firm.
Junior Partners are likely to earn around the $500K level (or less), with General Partners in the $500K – $1 million range in terms of salary + year-end bonus. And it's possible to earn less than $500K or more than $2 million; these are more like the 25th and 75th percentile markers, not absolute min/max numbers.
Venture capitalists make money from the carried interest of their investments, as well as management fees. Most VC firms collect about 20% of the profits from the private equity fund, while the rest goes to their limited partners. General partners may also collect an additional 2% fee.
Frequent travel is the norm: Top VCs typically travel multiple times per month, attending conferences, meeting startups, and conducting due diligence. Domestic vs. International: US-based VCs primarily travel domestically, with occasional international trips for specific opportunities.
Venture capital is a high-risk, high-reward type of investment, and there is no guarantee of success. While VC firms aim to identify the best opportunities and minimize risk, investing in startups and early-stage companies is inherently risky, and there is always the potential for loss of capital.
