Why is VC pay so low at the Associate level?

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Supply and demand, my man.

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Literally every market fam

Lol M1 clearly has no idea. No one is doing hardcore DCF modeling - and if you think sourcing good deals is easy, then you should go and raise some money

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What pay ranges are you seeing at the associate level?

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Top VCs typically have closer ranges to PE but the rest don't make much money because of small management fees. This doubled iwth VC is sexy allows for less pay

SD1 has it - the associate position is structurally unsuited for carry due the typical time in role, meaning less upside. Couple that with fund sizes that are often much much smaller than PE - 2% (or in reality less for all but the top GPs) of $500M doesn’t go that far when you need it to support the entire ongoing operation

Because you’re not doing hardcore 3 statement DCF modeling. It’s sourcing deals and sucking up to startup CEOs for deal flow. A former beauty pageant contestant could do the job and would outperform most consultants.

My point exactly, nobody in VC is doing any modeling.

Sourcing deals != Raising money

Right the point is this - what’s hard is finding good deals. If you believe you’re differentiated there raising money should be no problem - ergo you will soon be worth $50M. My point is that it’s quite a bit harder than you’re making it out to be, and is largely the differentiating factor in all private investing

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