However, associates who do more financial analysis would be required to have some finance skills. There are no specific educational requirements for analysts who spend most of their time sourcing and analysing deals. More generally, roles determine educational requirements. While this may suggest that anyone can get into venture capital regardless of education, certain educational requirements put you in good standing for such jobs.īiotechnology venture capitalists, for example, need a lot more specialised knowledge, and it is common to find venture capitalists with masters or PhDs at such firms. Siegler are two examples of former journalists turned venture capitalists.
While some get in after exiting their startups, others get in after working at startups, and some get in through the most unlikely places, such as journalism. Educational requirements for getting into venture capitalįor most people, there are no defined paths to venture capital.
P:S: While Mergers and Inquisitions’ hierarchy is typical, some firms may have different names for these roles.
The venture capital career path is similar to what you would see at a management consulting firm.Īccording to Mergers and Inquisitions, the hierarchy in a venture capital firm will look like this: Analyst, Pre-MBA Associate, Post-MBA or Senior Associate, Principal or VP, Partner or Junior Partner, and Senior Partner or General Partner.
For context, the Bureau of Labor Statistics projects that there will be 3,400 openings annually for professional athletes between 20 in the U.S. Unlike more established professions, there are not too many open roles in venture capital, moreso in Africa, where there is only a handful of local venture capital firms.īaiyin Zhou, a Senior Associate at Ascent Venture Partners, reckons there are as many open venture capital roles in the United States as there are openings for professional athletes. What roles are available in venture capital? Senior staff such as Senior Associates and Partners will typically make investment decisions, convince founders, and support them after an investment has been completed. For example, entry-level staff at most firms will be involved in deal sourcing and researching potential investments. While these roles cover what investors typically do, not everyone working in a venture capital firm will be involved in all of them. These roles cover the day-to-day activities of venture capitalists but do not include other things that go into setting up and running the firm. What venture capitalists do can be classified into four major roles: sourcing deals, analysing potential investments, convincing founders that they are the best investors for their business, and supporting the startups after investing. Since 2015, venture capital investment in African startups has consistently increased, from $185 million in 2015 to approximately $5 billion in 2021. Expectedly, these investments are often risky, and most venture capitalists expect around 70% of their investments to fail.Īlthough venture capital has been a source of business financing since the 1940s, it has only recently become an option for African businesses. Unlike other financiers, venture capitalists typically invest in companies that they believe will yield outsized returns. In return, the venture capitalists get a part of the business and an opportunity to contribute to management decisions. Venture capital, a subset of private equity, provides capital for businesses with tremendous growth potential. What is venture capital?Īll businesses need money to grow, and depending on your type of business, and what stage it’s at, you might struggle to access capital from traditional financial institutions such as banks. The best place to start is at the beginning.
I’m a journalist and this article based on my research and interactions with some people in the industry, shows how to get a job in venture capital as an African. I’m not a partner at a seed stage firm, nor did I just get a job as an associate at a venture capital firm. You’ll see many articles about getting a venture capital job start with the author (usually someone who has worked or is working in the industry) telling you how frequently they get asked for tips to break into the industry.