One of the things, I’ve always thought would be a nice job would be to become a venture capitalist. The reason, why I would like to be a venture capitalist is because once you have enough capital. You can invest in people who have the same ideas as you except instead of investing your own time. You invest your capital into their idea and you still get a part of their business equity. If your a venture capitalist and invest in 20-30 people that’s like having 20-30 different businesses make you money daily. It’s a great idea to become even more rich.
A venture capitalist will always make money because there are always newly born entrepreneurs who will one day build the companies of their dreams. To start their business without having the capital seed money themselves. They have to go through the venture capitalists. A venture capitalist is basically an investor who has a lot of capital and invests in different capital investments.
How To Become A Venture Capitalist
Becoming a venture capitalist requires a person to have a lot of money to start his venture capitalist firm. The goal of a venture capitalist is to take his investment capital and his business skills to create a high profit margin.
Landing a venture capitalist job can be very hard. Many people who want to become a VC will have to get a business degree, MBA to be taken seriously with financial firms. Before a person can become a venture capitalist. They must first become an entrepreneur and run their own business successfully before growing and building other people’s businesses.
A venture capitalist is not necessarily just one person’s capital. It can be comprised up of many different venture capitalists capital. Many venture capitalists start with $25 million to $1 billion dollars to invest into start-up corporations.
Getting A Venture Capitalist Job At A Firm
It can be very tough to get a job at a venture capitalist firm. The most common place is to work in an undergrad or business school. If you are getting an MBA, they are controlled by Harvard and Stanford. Getting into a firm is very hard and you need to network with other people.
Venture Capitalist Firm Hierarchy
Partners – Owners of the business. Get all of management and carry fees and write the checks.
Principals – Can write checks.
Associates – Usually post-MBA or 4-6 years of work experience.
Analyst - They do research and cold call companies.
Why To Be A Venture Capitalist
Everyone wants to be a venture capitalist but not everyone can do it. A venture capitalist doesn’t just loan money to the business but they become part owners and invest in it by using their skills and helping someone who is less experienced in business.
Becoming a successful venture capitalist will mean you are on the top of the financial food chain. Being a venture capitalist will bring extraordinary wealth and high visibility to the financial world.
How Do Venture Capitalists Make Money?
VC’s will make money by using their own pool of resources and assets to invest into a new company. By investing in a new company, the VC’s will be provided equity within the company.
Other Great Resource Links
- Jeffrey Bussgang Venture Capitalist Interview – He also wrote a book, Mastering the VC Game.
- Can Big Companies Become Successful Venture Capitalists?
- Shark Tank – This is a great show on venture capitalists hearing entrepreneurs and inventors ideas and investing in it if they believe in it.
Website Ranking
*Update* – I posted this blog post yesterday. I’m looking on google, I typed in How To Become A Venture Capitalist. My page is on page 3 mid-way ranking. I definitely, need to start ranking for a ton of long-term keywords.
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