Venture Capital Associate Compensation
There is a national obsession with knowing what everyone else makes at payday. Information on venture capital associate compensation is not easily compiled, but a few facts do emerge and they all are most favorable.
An associate is the apprentice in a venture capital firm. While “entry level” is hardly the term to describe this position, it is the starting point on the track to upper level management. The associate is usually advanced to Senior Associate and later could reach the position of principal or partner in the firm. Most companies are rather tight with the information on venture capital associate compensation. One thing is plain; they are having less and less trouble paying their bills.
There are estimates that the average compensation for a venture capital associate including everything might be in the neighborhood of $200,000 yearly. The figure, even if a bit inflated, points out two significant facts about the position. The first is that it requires a person with a good deal of education and experience to obtain it, and second, that it takes a person with a great deal of talent to hold it.
As opportunities for venture capital investment continue to increase in this time of rapid technological progress, the compensation figure for associates is definitely showing an upward trend. Some reports indicate that 16% increases for senior associates are not uncommon. One of the reasons that accurate figures are hard to arrive at, beyond the privacy concerns of the firms, is that many compensations packages include bonus and performance features that can greatly influence the final figures.
This is really logical in an industry that takes risks to enjoy high returns. The ability to locate an investment opportunity and perform the “due diligence” necessary to qualify it for a venture capital deal requires a high degree of skill and even courage. The saying “if it were easy, everyone would be able to do it” certainly applies to the venture capital associate.
The venture capital associate is well compensated for the education and the talent, he or she brings to the job. They share in the basic premise of venture capital and must be willing to take risks in order to realize great profit opportunities. The venture capital industry leads the financial world in the important job of keeping things moving forward into the future. They are on the front lines and at the cutting edge, and the associates are the soldiers in the trenches. They deserve all they earn.