The average salary and bonus in venture capital makes it a well-paying job, but people work in VC for one thing more than that: carry.Ĭarried interest is the percentage of fund profits that goes towards the general partnership. Partners are compensated through salary and bonus, and they are more likely to earn carried interest. Sourcing is not as much of a focus for partners (that’s why you hire the roles shown earlier), and their main priority is fundraising. Partners are the name and face of the fund.įollowing the trend of senior associates, and principals needing MBAs to advance in their career, we’d expect partners to need advanced degrees, but that doesn’t seem to be the case (two of our surveyed partners have PhDs the others only had bachelor’s degrees). Many still don’t earn carry, many others start to share the funds’ profits. They are compensated mainly through salary and a cash bonus based off performance. Principals are flexible with their work, and they help with sourcing, operations, fundraising, and supporting companies post-investment. Similar to senior associates, 62% principals we surveyed have an MBA or Master’s degree. Principals have usually established themselves at a firm, and they are on track to become partner one day. Most senior associates do not earn carry, but a small percentage do. Like analysts and associates, sourcing is a huge portion of their work, but they also help with operations, fundraising, and supporting companies post-investment. Senior associates usually have an MBA or Master’s degree (over half of respondents have an advanced degree), and they are more seasoned workers. Senior associates have established themselves professionally, and they start to get more responsibility in their work. Most associates do not earn meaningful carry. Their main priority is sourcing investments, but they also start to get more responsibility through supporting companies after the check. These employees also often come from another finance role like investment banking, or they have worked in another role in tech. Almost all analysts get no carry.Īssociates are above analysts, but they have a similar set of priorities. Their main priority is sourcing investments, and they are compensated mainly through salary and a cash bonus based off performance. These employees usually come from another finance role like investment banking, or they are fresh out of undergrad.
We will ignore managing partners and general partners since most of their compensation is in the form of carry.Īnalysts are at the bottom of the totem pole. Others name partners different things based on tenure.įor the sake of simplicity, here’s a generic structure we followed to make this report. Some funds follow a flat structure with only partners and admin workers while others have a more hierarchical structure. One thing to keep in mind as you go through these numbers is that VC notoriously does not follow a standardized hierarchy. Path to partner takes longer than expected. It took 12.1 years on average for the partners in this survey to work their way to that position.Most associates, senior associates, and principals have MBAs most partners do not. This could be an anomaly in our dataset, but most partners we surveyed did not have advanced degrees beyond a bachelor’s.Most VCs do not receive meaningful carry. ~75% of respondents receive less than 2% of carried interest.If you care about salary, do NOT work at a first-time / smaller fund. All of the respondents making the minimum / near the minimum for their position are working at smaller funds (below $50 million AUM).* The numbers below are the median from our survey results.
Here’s a summary venture capital salaries at various levels. This data is meant to help you better negotiate salary offers in venture capital when the time comes. Here are the results from our last three years of Confluence.VC salary data.
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