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Venture capital funds startups, helping new ideas grow. But who makes it happen? Let’s break it down.
General Partners (GPs)
General Partners steer the direction of VC firms. They make the big decisions and have a lot of skin in the game. Their main jobs:
- Raising Money: They get the funds from investors.
- Choosing Investments: They decide which startups to back.
- Guiding/Mentoring Startups: They use their experience to help startups succeed.
Junior Partners/Principals
Junior Partners, or Principals, are on their way to becoming GPs. They do a lot of the groundwork:
- Finding Deals: They look for promising startups.
- Evaluating Startups: They analyze whether these startups are good investments.
- Portfolio Management: They help manage the existing investments.
Associates
Associates are newer to the VC world. They do a lot of research and legwork:
- Market Research: They study trends and industries.
- Managing Deals: They handle the logistics of deals.
- Assisting Seniors: They help with the heavy lifting on analysis and reports.
Analysts
Analysts are often at the start of their VC careers. They focus on data and reports:
- Trend Analysis: They look at data to spot new opportunities.
- Financial Modeling: They create models to predict returns.
- Reporting: They prepare presentations and reports for the team.
Venture Partners
Venture Partners are usually seasoned experts. They might not work full-time but bring valuable insights:
- Advising: They provide advice on specific investments.
- Special Projects: They work on areas where they have deep knowledge.
Each person in a VC firm has a unique role that helps the firm succeed. GPs make the big calls, Juniors bridge strategy and action, Associates and Analysts handle research and support, and Venture Partners bring specialized knowledge.
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