http:www.jobsearchdigest.com Overview of the VC industry and careers/jobs available with venture capital firms.

1. Understanding the Venture
Capital Industry
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2. Venture Capital Industry Overview
• Industry reaches beyond internet
start-ups
• Venture capital (VC) firms invest in fast
growing industries
– ranging from alternative
energy to social networking
communities
• Tremendous opportunity
for jobs in venture capital
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3. Venture Capital Business Model
• Invest in companies too risky for standard
debt-issue
– E.g. start-ups due to short history
• Creates highly
entrepreneurial atmosphere
– Balance risk-to-reward ratio
• Expect large pay-offs for risk
– Exit strategy is primary concern
• IPO
• Acquisition
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4. Produce Real Value/Revenues
• Less money available to new ventures
– More difficult to access than in the past
• Venture capital (VC) will continue to
flow to tech companies that prove
working model
• Fewer IPOs
• Exit strategies based on acquisition by
an established industry player
– Buy vs. build approach
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5. VC Job Opportunities
• Ample & lucrative • VC firms are small
for those with – Specific roles to fill
drive & business – Typically for a
intelligence particular industry
• Generally found • Those with domain
via professional or expertise have an
personal network advantage
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6. Careers in Venture Capital
• Involve selection of portfolio
companies, investment of
funds, product
launch, growth management
• Partner will oversee the management of
many companies
– Active participation, often with seat on BOD
– Assist with successful product/service launch
– Position for long term profitable growth
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7. Considering a VC Job
• Do significant due diligence
– Compensation plan
– Past fund performance
– Political environment within firm
• Long hours, with challenging work
• Work environment
• Firm culture
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8. A Look into VC Firm Structure
• Funding for VC activities made by
investors, referred to as limited
partners
– Wealthy individuals
– Financial institutions e.g. insurance
companies, banks, pension funds
• Investors have little or nothing to do
with daily operations
– Serve mainly as funding source
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9. Roles at VC Firm
• General partners bridge gap between
funding partners & vested companies
– Have extensive business
experience, typically as senior execs in
financial institution or industry corporation
• Roles supporting general partners
– Many VC jobs available for savvy, intelligent
business-minded individuals
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10. Challenges in the VC Model
• Presentation by Adeo Ressie, founder
of The Funded.com
– VC business model is breaking down
• Theory: more money flowing into VC
firms than is being generated by their
investments
– Creating negative balance on economy
– Contradicts VC industry: VC creates stock
market growth & job creation
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11. Thoughts Supporting Theory
• Too many investors put too much money into
Silicon Valley
– Too few deals to support it
– Valuations driven up to unreasonable levels
• Larger companies
(Yahoo, Microsoft, Google, Cisco) buying
start-ups earlier in life cycle
– Keeps start-ups from becoming large, future
competition
• Greed by some VCs
– Tempted to raise larger pools of money because of
fees earned on funds
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12. Thank You
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for more information
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Images used with permission from Microsoft