You are on page 1of 6

Bianca Dellapenta

Business 1010
Venture Capitalist
Job Description/definition: While taking business class, Ive been thinking about a
career path that may work well with my interests and current/future knowledge base. In
researching, I think Ive found a good fit; Venture Capitalist. I currently work in the medical
field but have dabbled in real estate investing in the past with a role as private hard money
lender. Ive thought a lot about exploring the role of entrepreneur and venture capitalist. By
definition a Venture Capitalist is An investor who either provides capital to startup ventures or
supports small companies that wish to expand but do not have access to public funding. Venture
capitalists are willing to invest in such companies because they can earn a massive return on their
investments if these companies are a success (Wagner, 1999).
Career Path: On a day to day basis, a venture capitalists day may look something like
this; find deals. Venture Capitalists are pounding the pavement researching companies that have
viable goods/services that need capital to get started. Due diligence is a must. Its important to
do market research to determine the cost basis needed to get the business rolling and the potential
profit on the premise the business venture will do well and succeed. Meetings will take up a
good portion of the day. Communication in the venture capital world is paramount. Meetings
with entrepreneurs, business owners/potential partners are going to occur often. The amount of
daily work is going to vary but for any of us wondering, the majority of work is going to be
plentiful around the structuring of a deal. (DeChesare, 2007-2014) says he put in an average of
60 hours a week. This is something to take into consideration when time, energy, and resources

are put into finding a deal when in actuality; very few will ever be selected by firms and VC
money invested.
There are different levels of being in the Venture Capital business. Some VC will find
the deal, structure the deal, research the deal, and complete due diligence. Other VC will be on
the back end where a viable deal is on the table, has piqued the interest of the Venture Capital
partners/firm, and is now considered for actual investment and funding. There are associate VC
and Junior VC all vying for the position of Partner within a firm. At the associate and junior
levels, you most likely will not even be considered for advancement unless you have an MBA
((DeChesare, 2007-2014). Well discuss this point in the next paragraph.
General Education Experience: In terms of becoming a Venture Capitalist, its
advisable to have AT LEAST a general understanding of business and finance. Although it is
important to be self motivated and driven, to be taken seriously, completion of a bachelors
degree in one of the following areas of study is recommended; Accounting, finance, economics,
business or other related field (How to Become a Venture Capital Broker). This is going to show
a potential employeer that you have knowledge of finance and economics. This is iminently
important because as suggested by (Royal, Evans, & Windsor, 2014) investment analysts, fund
managers and insurance professionals lack the appropriate competencies, skills, knowledge and
abilities required to meet the demands of the analysis (pg 189). Pursing one of the above
referenced bachelors degrees will present opportunities for entry level positions. A combination
of education and work experience is highly sought after when persuing a position/partnership as
a Venture Capitalist and will only help aide in advancement with the greatest likelyhood of
success (How to Become a Venture Capital Broker). In addition to work experience and a

bachelors degree, a MBA (masters degree in business administration) is more highly


revered/coveted if becoming a partner at a firm is your desired outcome.
Average Salary: There are three ways to make money as a venture capitalist: 1. Base
Salary 2. Year end bonus 3. Carry. Carry refers to money you invest alongside the firm when
they invest in a company (DeChesare, 2007-2014). Salaries can range from $50,000 to
$180,000 or more. The entry level position is closer to $50,000 and may indicate a bachelors
degree in finance, or economics. The more experience and on the job training the better your
chances are for improving your earning potential. Year end bonus will vary based on the
performance of the companies portfolio and the size of the firm. The more profitable a company
is the bigger the base salary and bonus could be. Carry is seen as a big perk because of the
potential to make a lot of money, but its quite rare to find the next YouTube that gets you a 41x
return on investment (DeChesare, 2007-2014).
Career Outlook: I think the idea of becoming a venture capitalist is exciting and
enticing with the amount of money that can potentially be made. There is a certain stigma
associated with the title of Venture Capitalist. In my eyes, its a prestigious role. A role occupied
by those with a certain amount of intellect, drive, connections, resources, and money. I realize
now, how incredibly difficult the job may be. What I failed to realize before is how many deals
are looked at on a regular basis without ever going anywhere. The amount of time and
dedication to upper level education, working in the field and potential hours spent on the job all
have to be taken into consideration when thinking about Venture Capital as a career path.
In a personal interview with Barry we discussed his educational background, brief work
history, and an investment/business hes researching and looking to invest in. Barry obtained his
bachelors degree in International Business and Finance from Nova Southeastern University, in

Florida. After graduating he moved to New York City and became a market maker on Wallstreet.
A portion of his time was spent with a hedge fund by the name Millennium Partners. In 2008 he
moved to Denver, Colorado and took some time off from Wallstreet to pursue other
opportunities. During his time off he traveled to Mexico to look into and research a business
opportunity that presented itself. Months of research, due diligence, and conversations with local
business men went into this potential business venture to no avail. As pointed out previously,
many business opportunities will present themselves or be sought after, and rarely will it pass the
due diligence phase and be presented to Venture Capitalist to invest money. Barry pointed out
the time commitment needed to research a company. By the time its presented to a firm for
funding, the risk has been minimized the best it can be.
Barry is now looking into investing in a car company with a gentleman who resides in
New York. This is not your average car company however, it is the purchasing, rehabbing, and
selling of old vintage classic cars and trucks. As Barry researches the company, hes looking to
see what potential buyers are out there as he realizes it may be a niche group to appeal to. Leon
is the gentleman in New York looking for the capital and already has a clientele base established.
Part of the funding will go into the business itself, with additional funding going into a
warehouse to house the vintage cars. Hes closer to the back end of the deal now where due
diligence and research has taken place and he will present the business venture to the other
investors for funding (B. Eisen, personal interview, October 14, 2014).
Advantages and Disadvantages: As Ive mentioned in previous correspondence, I am
driven, motivated, and like to do research. Ive flipped two homes; partnered on
rental/investment properties and have been a hard money lender on a small scale so I feel I have
some knowledge of real estate. I do not currently have the educational degree completed, but it

is a work in progress. Disadvantages for me in choosing this career path include a lot of
schooling Im not sure Im mentally prepared for. As a single mother, I have time constraints
that prevent me from working full time and pursuing school full time. I see this as a
disadvantage based on my age, and my childs age. This may not only be a disadvantage for me,
but other mothers looking to go into this field of study. As noted in the paper, there is a
significant time commitment needed to research companies. On the other hand, advantages of
the Venture Capital career path in general include finding the deal of a century and capitalizing
on it.
My fit: I would love to say while researching Venture Capital and the Venture Capitalist
as a career path I was able to solidify my initial inclination to pursue this endeavor, but sadly I
cannot. I find I am not able to say with complete confidence that this is the career path I would
choose for myself. I enjoyed finding out more about the career, the required education, the
skills, the mindset, and time commitment. The daily life of this career is not what I had
envisioned and dont think it is a good fit for me. While I still see myself actively pursuing
investments in real estate, and possible businesses to include multi unit dwellings or possible my
own assisted living facility, I dont know that the title Venture Capitalist is in my future.

Reference page:
DeChesare, B. (2007) Venture Capital on the Job. Mergers and Inquisitions, Retrieved from
http://www.mergersandinquisitions.com/venture-capital-on-the-job/
Education Portal. (2013-2014). Do I want to be a Venture Capital Broker. In How to Become a
Venture Capital Broker. Retrieved from http://educationportal.com/articles/How_to_Become_a_Venture_Capital_Broker.html
Investopedia. Retrieved November 19, 2014, from
http://www.investopedia.com/terms/v/venturecapital.asp
Royal, C., Evans, J., Windsor, S.S. (2014) The missing strategic link human capital knowledge,
and risk in the finance industry two mini case studies. Venture Capital: An
International Journal of Entrepreneurial Finance, 16, 189-206. doi:
http://dx.doi.org/10.1080/13691066.2014.916856