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Junior VC Salary Cuts & Picking Startups

Author

Michaela Gordon
March 13, 2024

The Early - 8th Edition

Hi all! Hope everyone’s had a great start to the week 😊 As always, thanks all for following and for checking out the job board! Some exciting roles just posted this week from a16z, Antler, and more 👀 

💹 Today’s schedule:

New VC Roles This Week 💫 

Internships 🤓 
Analyst Roles 😍 
Associate/Senior Associate 😄 
Operational Roles 🤠 

Roles Still Open From Last Week 🏃‍♀️ 

❗️ Note that many VC roles are posted without application deadlines and filled on a rolling basis - if you see one you like, I’d recommend applying within a week, or as soon as possible!

In the News: Early-Career Reads This Week 💡 

I’ve seen this WSJ story pop up a few times over the past couple of weeks. The article pulls data from the EVCA’s 2023 Compensation Report, which found that VC analyst salaries “dropped 10% last year” (2023) and senior associates saw a “3% decline” in salary. The article cites the difficult fundraising environment and increasingly competitive VC landscape as reasons for a decline in junior VC comp, and also predicts potential junior VC layoffs across the industry.

  • My thoughts:

    • No matter the broader environment, junior VC comp is WIDELY variable across stages, industries, and geography. See my previous post on VC compensation.

    • It’s to be expected that all VC bonuses will take a hit in a challenging market. Partner-level comp in 2023 also saw a small decline (-1%) - the trend is not limited to junior VCs. As a VC, you’re paid in proportion to how well your portfolio is performing, regardless of your seniority.

    • Junior roles may be downsized, but I am skeptical of arguments that AI combined with the difficult market will eliminate the majority of junior VC roles. This is because VCs are trained through an apprenticeship model, and the industry is relationship-based. If partners believe that junior team members are adding value in diligence and bringing in deals they wouldn’t otherwise see, they will absolutely keep them on.

I enjoyed this article by Fluent Ventures Managing Partner Alex Lazarow, who draws parallels between evaluating startups as potential investments and as future employers. An awesome article if you’re an investor considering moving to a startup role, or vice versa.

A few points that stood out to me:

  • Be deeply inspired by the founder’s vision. This seems obvious, but can be easy to forget in the thick of deal flow or recruiting. Energy is a great tool to vet startup fit as an investor or employee. The more energy and inspiration you feel when discussing the company’s mission, the better the potential fit and problem being solved.

  • Would I invest a significant amount of my time (our most limited resource) in this company’s mission? This is a great question to ask as an investor who will potentially advise the company, and as an employee who may be committing 5+ years of their life to see the company’s vision come to fruition. If you’re not sold enough on a mission to spend the time required to watch it succeed, it’s likely not the best fit.

  • Thoroughly vet the founding team’s managerial style. In any role, the leadership team shapes company culture, and should be invested in your learning and success as an employee. As an investor, if you wouldn’t want to work for a team, it’s likely the most talented operators wouldn’t either. (Fun fact: before I invest in any public stock, I always research the CEO and leadership team of the company to learn more about their management style and vision.. extra, I know!!)

This Thursday: Interview with Ryan Chandra 👏 

Tomorrow, I’ll be sharing Episode #2 of the Early interview series! 🎉 This week I chatted with my friend Ryan Chandra, a fellow Cardinal alum and early-career VC at Accenture Ventures. Ryan graduated from Stanford in 2021 and began his career as a consultant at Accenture. He later transitioned to a VC role within Accenture Ventures, the firm’s venture arm, and leads the fund’s data and AI investments. He’s one of 5 members of Accenture’s venture team - out of 700k+ total Accenture employees! 😱 

Ryan loves chatting with fellow investors and founders building in the software space. You can find him on LinkedIn or via email: [email protected].

So excited to share this conversation with you all! 👀 

A background on the Early interview series: I’ll be hosting guests to talk through career learnings & their experiences breaking into roles such as VC, product, startups, and beyond 🤩 I’ll be sharing written highlights from these interviews via this newsletter, and will also upload the full conversations to YouTube 🙂 

We have upcoming guests from the Westly Group, 11Tribes, and more! 🙌 

Poll: What’s Top of Mind for You? 💭 

I’m always brainstorming ways to make this newsletter more helpful (it’s been a learning process!) I had a few ideas on potential additions and would love to get your take below 🤗 

What do you want to see next?

Would love to hear your thoughts on a few ideas I've had!

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Resources 📝 

  • Check out Soapbox, one of my favorite newsletters focused on career, culture, and capital 🙌 

  • Check out NextGen’s newsletter, geared towards the next generation of leaders in venture capital 💪 

  • Download my meeting notes template for VC/investment pitches 🧠 

  • Take a look at the Early VC job board with roles updated twice weekly 🤓 

Refer a Friend 👭 

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Say Hi! 👋 

And that’s all for this week! You can find me on LinkedIn, Instagram, and X. As always, feel free to reach out to [email protected] with any questions and/or feedback. I’d love to hear from you!🙂 

-Mic

p.s. this is one of my (three!) dogs, Levi, striking a pose after being groomed this week 🙂 

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