Early stage venture capital does not require any complex financial skills. It is majorly about people skills and business acumen. It’s quite well paid for what the exact work is. That’s why, I feel like that it is being gate kept by folks from some colleges (IITs especially).
What do you think?
In my experience, most VCs had some MBB backgrounds (some even had M.S. / Ph.D. from abroad). I'm not sure about gatekeeping. Maybe employers in VC are risks averse when it comes to selecting employees, and people generally want to go with safe bets.
Not to mention, most VC funds underperformed index funds in the past
https://hbr.org/2014/08/venture-capitalists-get-paid-well-to-lose-money
You start a VC to become rich not beat the index. Two years later that VC will close or morph into a different theme " to achieve the best returns". Greedy rich people will invest. According to them it's anyway going to be paid as tax. Atleast now we can offset some of the losses from the taxable income.
People are hired in early stage vc for their networks. It's a sales job where you have to find the best founders and convince them to take your money. The best founders are likely to be from the best colleges. If you're from the best colleges then mathematically you have a better chance of knowing them and getting them to take your money. Thats it.
M7 my mate. The caste hirearchy is as follows -
Financial skills, cfa etc are crying in a corner, byjus raking in the moolah
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