Venture capital firms or funds invest in early-stage companies in exchange for equity, or an ownership stake. Venture capitalists take on the risk of financing risky startups in the hopes that some of the firms they support will become successful. It’s an extremely exciting thing to be a part of, but it also takes a specific kind of person. Like almost all jobs and industries, VC isn’t for everyone. Have a read of the following skills to see if you’ve got what it takes…
Remember, a lot of the time, it’s not what you know; it’s who you know. This couldn’t be more relevant when it comes to the Venture Capital sector. A Venture Capitalist needs to be able to strategically network, and use said network to open doors for their firm and portfolio companies.
Emotional intelligence (also known as emotional quotient or EQ) is defined as the ability to understand, use, and manage your own emotions in positive ways to relieve stress, communicate effectively, empathise with others, overcome challenges and defuse conflict. Strong emotional intelligence allows venture capitalists to evaluate the states of their portfolio companies. It helps them to read between the lines and identify the values and motivations of their founding teams. Plus, it empowers them to develop strong levels of trust and effectively act as advisors.
Be a brand
According to venture capital powerhouse 8VC, one of the most important skills a venture capitalist can have is the ability to be a brand creator. The most successful VCs are vigilant about constantly building and nurturing a brand and a community that welcomes new and existing portfolio companies.
This really comes with the territory folks. By definition, a venture capitalist is a private equity investor that provides capital to companies exhibiting high growth potential in exchange for an equity stake. The keyword here is ‘potential’ – not every investment will work out, so there’s always a risk. If the idea of possibly losing money unsettles you greatly, then you may want to consider a different path.
In the VC business, the word ‘maybe’ just doesn’t come into play! There are two choices in this world; you either pass on a deal or invest in one. Finding a balance between gut-based decisions and methodical/data-oriented decisions is at the core of what a Venture Capitalist does daily. This is especially important if you are the lead investor on a round, because if you can’t make a decision quick, another fund may beat you to it.
By Rebecca O’Keeffe, Content Creator, Jobbio.
Take note of the above, and you & you’ll get your dream role in no time! Oh, and be sure to keep an eye on Silicon Canals’ Jobs, for loads of exciting opportunities.
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