Venture Capitalism: The Associate

All skills of patience, determination and calm will be tested working as an associate in a venture capitalist firm, especially if you hope to be successful. Associates have an important part in the bigger picture of venture capital firms. They are the essential hub around which the spokes of industry revolve in lucrative circles.

All skills of patience, determination and calm will be tested working as an associate in a venture capitalist firm, especially if you hope to be successful. Associates have an important part in the bigger picture of venture capital firms. They are the essential hub around which the spokes of industry revolve in lucrative circles.

Letís have a closer look at the vital role of an associate working in conjunction with a venture capitalist firm in today’s modern world of industry.

The Task of an Associate

Letís start by detailing the routine tasks of an associate at a venture firm. These duties will likely be similar no matter which venture capitalist firm they operate from.

An associate will have to take command of such duties as portfolio community building, screening deals prior to processing, industry reviews, representing the firm at important junctions, sourcing deals for partners, assessing the legalities of deals made by partners and setting up alumni events.

And these are only a few of the many other duties that come standard with the position of associate to a Venture Capitalist Firm.

Follow UP

Another important function of the associate is to act as the intermediary between the partners and the board. The associates are expected to attend important functions and keep abreast with the direction the company is taking.

This is to make sure that all the money flow moves in a positive direction as opposed to taking perilous risks and keeping fingers crossed. If things do happen to take a turn for the worse, the associates would have warned the board of the likelihood of this eventuality.

This is the biggest responsibility of the associate to provide a warning if a particular course of action seems to be unwise. Failing to warn the board could put the associateís position in jeopardy.

Gain Experience and Acumen

A Venture Capital Firm will eventually change partners and the important roles these people play will be passed to someone who knows the job and can step into the spots left by former partners.

And who do you think is being groomed and observed for signs of aptitude for these positions? The associates, of course. This one reason partners will have associates shadowing them and getting important insights into how the particular firm operates. Associates who show aptitudes for pushing the firm onward and upward will be furthering their careers significantly.

Creating Contacts

The firm will depend heavily on its networks set up and operated by the staff, at the end of the day it all comes down to this. If an associate is not establishing quality networks the firm will suffer and the associate will not have done their job.

This is why an MBA will often be insufficient experience for the high demands of an associate at a venture capital firm. Those lacking in the social graces required to make a good impression will be left behind somewhere.

Bottom line, networking is the lifeblood of the firm; those who understand and contribute to this will be highly successful those who donít are probably in the wrong line of work.

Demonstrating Value to Entrepreneurs

Here is another thing that is sure to be of value to a venture capital firm. Associates who can develop rapport with the eccentrics of the entrepreneur world.

A good way to begin on this is to have a handle on the current market analysis and a budgeting plan to help a good idea get up and going. If the entrepreneurs are content the firm will be doing well as well.

The task of developing pricing strategies will never be done by one associate alone, the responsibility is shared with associates of the firm. Those who are able to demonstrate prowess in this area will do a lot to further their good standing with the board.

Prudence in Decisions

If an associate has a hard time making mature decisions, they will eventually begin to adversely affect the course the firm is taking.

Making mature decisions as an associate means the ability to understand how deals will situate themselves in the market and how they will be successful in that position. This requires a good understanding of how the market operates and shifts over time.

A top of the line associate can, by the same measure, seek out those gold mines hidden just below the surface and circumnavigate the bad deals, thus proving herself, or himself, a major asset to the venture capital firm.

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