A business venture fund consultant invests in private companies and entrepreneurs to help achieve financial profitability so that they can earn a return on their investment. Also known as venture capitalists, these professionals often require at least a bachelor's degree in a field related to finance, economics or business.
Business venture fund consultants evaluate the risks and the potential of private companies, provide investment opportunities, and guide companies toward profitability. This job typically requires a bachelor's degree in a field such as business, finance, or economics; however, some employers may prefer candidates that hold an MBA degree. This job might appeal to individuals with interests in finance, investments, and financial planning.
|Required Education||Bachelor's degree common; MBAs sometimes preferred|
|Projected Job Growth (2018-2028)*||16% for all financial managers|
|Median Wage (2018)*||$127,990 for all financial managers|
Source: *U.S. Bureau of Labor Statistics
Business venture fund consultants provide financing for private companies in an effort to bring them to profitability, at which point they earn a return on their investment. Also known as venture capitalists, these consultants support entrepreneurs by providing the seed money required to turn innovative, and often risky, ideas into successful products and services. Investment occurs for brand new start-up companies as well as existing organizations that still have room to grow. According to the National Venture Capital Association, companies can take up to eight years to be successful (www.nvca.org). If a business matures, it will become acquired by another company or go public, with profits shared among investors, management, and employees.
A primary aspect of a venture capitalist's job is research and analysis. Before making a decision to invest, consultants evaluate the business concept and strategy, existing competition, the market, and the company's management team. Business venture fund consultants at venture capital firms then present their findings to their partners with a suggestion to invest or not. After providing funds, consultants can guide companies toward maturity, providing advice on strategic and hiring decisions as the company grows. It's common for consultants to join the board of directors at companies they have invested in.
There are no formal educational or training requirements to become a venture fund consultant, though most business venture fund consultants have completed a bachelor's degree program. Many also earn MBAs. It's common for venture fund consultants to have significant business experience as well.
Business venture fund consultants often complete a business, finance, economics, or accounting bachelor's degree program. Many venture capital firms specialize in an industry and may prefer applicants with relevant coursework and experience. For example, a firm that typically invests in technology companies may prefer applicants who have completed a computer science or related degree program. Completing a bachelor's degree program relating to a specific industry and then completing an MBA program can enhance opportunities.
Salary Info and Job Outlook
According to the U.S. Bureau of Labor Statistics (BLS, www.bls.gov), the median annual salary earned by financial managers, which includes business venture fund consultants, was $127,990 in May 2018. Employment in this career field, per the BLS, is expected to grow by 16% between 2018 and 2028, which is much faster than average.
Business venture fund consultants must be prepared to make risky investment decisions throughout their careers. They also need to have strong research and analytical skills, as well as the ability to help companies make strategic decisions that will aid in growth. A master's degree may prove beneficial when seeking positions with certain employers.