The Business of Venture Capital. Mahendra Ramsinghani. Читать онлайн. Newlib. NEWLIB.NET

Автор: Mahendra Ramsinghani
Издательство: John Wiley & Sons Limited
Серия:
Жанр произведения: Личные финансы
Год издания: 0
isbn: 9781119639701
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Inn and trying to impress panels of interviewers with their technical and social skills, juniors applying for summer internships in finance and consulting can now reap the benefits of their work: elaborate “sell days” to convince them to accept the job… . They paid for two nights at a fancy hotel in New York… . They rented out a museum and had a cocktail party, and then rented out the VIP room in a nightclub in Soho… . They even send chocolates in the mail… . They showed recruits a whole lifestyle. When Goldman Sachs CEO gave a keynote speech to Wharton MBA students, the first point he made after stating Goldman Sachs's $23 billion in revenue in 2004 was the importance his firm places on “hiring and retaining the best people” in order to maintain a “culture of excellence.”1

      Brant Moxley, managing director at Pinnacle Group International, an executive recruiting firm that focuses on private equity and venture capital career opportunities, says, “There are 10 times the number of applicants for every job opening in the venture capital arena. The demand is staggering. Strong operating experience and technical and financial skills, or experience in the investment banking business may also be a badge of honor at the entry level. What I find fascinating is while everyone wants to get in the business of venture capital, not many understand what it takes to stay in the business.”

      A pre-MBA position is, by design, established for two years. “Ninety percent of the time, these positions are not partner tracks. At best, an analyst would stay with the firm for three years, instead of the usual two,” declares Brant.

      A Typical Venture Capitalist's (VC's) Responsibilities

      A typical position description for investment professional would read as follows:

       Key tasks and responsibilities. Participate in and contribute to all aspects of the investment process with responsibility for all quantitative and qualitative analysis of portfolio companies.

       Sourcing and Analysis. Develop a sourcing strategy and identify key competitive elements in developing a sustained long term advantage. Evaluate potential opportunities, including sector research and trend analysis. Conduct due diligence, assist with deal execution and transaction management.

       Structuring and execution. Negotiate investment structure in close liaison with the legal team. Prepare and coordinate the execution of term sheets, investor rights and share purchase agreements, and other legal documentation.

       Portfolio management / Post-investment monitoring. Support the CEO, identify value-add levers and carry out portfolio company analysis on a quarterly basis. Stay up to date on performance variances, top challenges for each company. Prepare returns forecasts and updates for limited partners. Awareness of relevant legal aspects of corporate governance is essential.

       Marketing and fundraising. Marketing, positioning, and fundraising via strong relationships with GPs/investors/ consultants/advisers.

       Skills. Knowledge of relevant (health care, technology, fintech) sectors. Transactional experience and analytical abilities. Advanced financial, business modeling, and writing skills.

       Competencies. Results-driven, ambitious, and highly motivated. Strategic and commercial acumen. An entrepreneurial approach, initiative, and adaptability. Team player with a strong work ethic. Excellent networking skills.

      “I heard once that all venture capitalists operated from 3000 Sand Hill Road,” says David Cowan. Sand Hill Road was the mecca and Andreessen Horowitz, NEA, Sequoia Capital, Draper Fisher Jurvetson (DFJ), Battery Ventures, and more were all stationed in the same neighborhood. David, who had a brief two-year stint at Oracle, was eager to explore possibilities in the venture universe. One fine afternoon he drove to Sand Hill Road and walked unannounced into one of the venture firm's offices. The lady at the front desk was firm: “No, we don't have any openings.” But David persisted. “I am sure you know a few firms who would be looking.” The lady pulled out a copy of the Western Association of Venture Capitalists directory and circled a few names. “I wrote letters to five firms. Two of the five offered me a position,” recalls David, who has been with Bessemer Venture Partners, for over two decades years.