Why doesn’t everybody become a venture capitalist since you get paid well and don’t have to build anything or risk your own money? It sounds like the best job in the world.

Well, a few reasons:
  • There are very, very few partnership slots.
  • Venture capital is a tiny industry.
  • There is no point in adding a partner that isn’t accretive. So the odds of you making partner are very low. Possibly zero.
  • It is brutally competitive to get into hot deals.
  • At most firms, there is no clear promotion path and a non-GP slot usually lasts 2 years or so.
  • Firms are super-hierarchical, and patronizing. She or he with the hot hands rules it all.
  • Often, the partners can’t stand each other.
  • The skills you learn aren’t very portable to other jobs.
  • Yes, you do have to risk your own money, as a general partner at least. It varies, but often 2% of the fund comes from partners. That can be a lot.
  • In a big firm, often one person makes all the decisions. Forever.
  • You are just a number.
  • You will
    do nothing enduring, nor will you change the world in any way.
  • If you like to work on a team, it’s not a team sport.
  • Many non-GPs are pretty jaded.
  • At seed and very small firms, the salaries actually can be pretty terrible. A $20m fund might have $400,000 in fees per year to pay everyone — all the staff, rent, salaries, expenses, travel, etc.
  • Even if you do happen to be any good at it — and you probably won’t be — your boss likely will take credit for whatever great deals you do source.
  • The world does not need another venture capitalist.

So do it if you have true passion for it, and are willing to break through the odds — and can truly, somehow, hustle into the very best deals.

Otherwise maybe do something else. View original question on quora The post Why doesn’t everybody become a venture capitalist since you get paid well and don’t have to build anything or risk your own money? It sounds like the best job in the world. appeared first on SaaStr.

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