Career Definition of a Venture Capital Analyst
When a business is starting or expanding, one of the ways that it can secure financing is by securing venture capital. The role of the venture capital analyst is to determine which companies money should be invested in. Since venture capital analysts deal with large sums of money and investments that are considered risky, they must do a lot of research. Their tasks include assessing financial reports, business records and other relevant data. They also talk to people who work for the company. This can include questioning managers, owners and employees. Once they've assessed all relevant information they make a decision about whether or not to invest in the business. Their objective is to produce revenue for their clients by selecting the right high-risk investments to generate the highest potential returns on their investment.
|Educational Requirements||Bachelor's degree|
|Job Skills||Research skills, analytical skills, communication skills, decision-making skills, time management skills, organizational skills, interpersonal skills|
|Mean Salary (2017)*||$81,915|
|Job Outlook (2016-2026)**||11% (financial analysts)|
Sources: *Glassdoor; **U.S. Bureau of Labor Statistics
A bachelor's degree is required to pursue a career as a venture capital analyst. Employers typically look for individuals who have studied finance or a similar discipline. A master's in business administration may be an asset for those seeking employment in this field or who are interested in pursuing advancement opportunities. Although not all employers require certification, earning industry certifications may also appeal to potential employers.
Venture capital analysts must have strong interpersonal skills and communication skills. They need to be able to effectively communicate with people who work in a wide range of industries and they also need to effectively present their investment recommendations to their clients. Research skills are crucial because they must complete thorough assessments of all relevant data in order to be able to reach conclusions about the potential success of different businesses. Decision-making skills are important because they must ultimately reach a conclusion about whether or not to recommend investing in a company. Time management and organizational skills are also important to meet investment deadlines and ensure that all relevant tasks are completed.
Career Outlook and Salary
The U.S. Bureau of Labor Statistics (BLS) provides occupational data for financial analysts, which includes venture capital analysts. The BLS reports that financial analysts should experience an 11% rate of job growth from 2016 to 2026. According to Glassdoor, in 2017 the average annual salary for venture capital analysts was $81,915.
Venture capital analysts are financial professionals who rely on strong analytical skills and the ability to make good decisions based on their research. Those who are thinking about a career as a venture capital analyst may be interested in learning more about other careers that involve similar skills and duties; information about some comparable careers is available through the links provided below.