People working in venture capital firm are known as “venture capitalists”. These people either come from consulting or corporate backgrounds, entrepreneurial backgrounds, or finance background. Titles in venture capital firms vary but the following are main categories:
An analyst is the most junior professional in the firm. They usually have 1-2 years’ prior work experience. The analyst’s key role is to network, keep an eye on latest industry trends, take part in VC and industry events, and call potential target customers to learn more about their business.
Associates are expected to stay until they became partners. They are usually operational leaders, investment professionals, consultants or ex-bankers. Their role is more focused on business plan analysis, due diligence, examining interesting industry subsectors, executing transactions, and helping out portfolio companies.
Principles make portfolio companies run smoothly and they are on the board of several portfolio companies. Their other role is to network and to identify opportunities for the firm to negotiate terms or acquisitions. They also assist to exit portfolio companies.
Principle and partners have similar roles. The only difference is that partners are less involved in the daily deal-making. They are more involved in tasks such as finding key sectors to make investments in. They determine when to invest and exit.