Why becoming a venture capitalist is harder than you think
Kyle Stanford, Chief VC Analyst at Pitchbook, appears on Catalysts to discuss the outlook for venture capital as a career path and its current prospects in today’s market. Stanford explains that in 2020 and 2021, venture capitalist was a highly sought-after job in the world of high finance. “This was the hot, sexy finance job where you could jump in and raise money, collect fees, make really good-looking investments, and say you have all these new unicorns in your portfolio.” However, he explains that the job has changed a lot in the current market. “It’s a very tough game. You need a sourcing model, you need your own deal flow. LPs need a reason. [limited partners] VCs are less willing to invest and it’s no longer easy to raise funds. Even branded funds and long-established firms are looking for ways to eliminate DPI. LPs are very cautious, so jumping into VC sounds great and it’s still a great career path, but it’s probably not as easy as it was a few years ago.” For more expert insights and the latest market trends, click here to watch this full episode of Catalysts. This post was written by Melanie Riehl.