Author: Business Venture Solutions
While the term venture capitalist has been applied to any individual that engages in providing or assisting with providing investments into small and startup businesses, there are a number of classifications of individuals that you will work with when looking for venture capital.
While we discussed the structure of the venture capital firm itself in a previous article, we will now focus on the personnel. We will start on the lowest part of the totem poll – and move up!
The first level of venture capitalist is the associate. This individual typically has graduated from college and has spent at least one to two years in an industry such as technology, finance, or investment banking. This individual may or may not have an MBA, but this degree is becoming more common among associates at venture capital firms. These people often run analyses on potential investments and infrequently deal with clients or businesses in which the VC firm has an investment.
The second level of VC is the principal. This person is often on track to become a partner at a venture capital firm. They assist with overseeing the investments made by the venture capital firm. They often have extensive experience in the private equity or investment banking industries.
The third level of VC is the entrepreneur-in-residence. This individual is usually a highly skilled entrepreneur that has had years of senior level business experience. They may or may not have years of experience directly in the venture capital or private equity industries. However, they bring a wealth of experience, guidance, and mentoring for senior level executives of companies that have been invested into by the venture capital firm. They often sit on the board of directors of companies that are owned by VC firms.
The final and highest level of venture capitalist is the partner at the VC firm. These individuals have the final say as to the investments to people looking for venture capital. They also work extensively with the investors of the venture capital firm. They are instrumental in the capital raising process and for large investments they (much like their second tier counterparts) often directly provide advice to senior level executives.
Venture capitalists, among all of the discussed classifications, are typically well educated and ambitious people. The allure of multimillion dollar salaries, payouts, and prestige leads the best minds in finance to the venture capital industry. As such, you may find it a little difficult to work with these people as they can often have large egos. Although this is a stereotype, it is not uncommon. The nature of the work itself demands that a venture capitalist be confident, intelligent, and diligent.
Article Source: http://www.articlesbase.com/entrepreneurship-articles/the-people-involved-in-the-world-of-venture-capital-2327087.html
About the Author
Looking For Venture Capital is a specially designed website for entrepreneurs that are seeking to raise capital for their startups, small businesses, and expanding existing businesses. The focus of the site is on Venture Capital.
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