The VC Analyst is an investment and entrepreneurship professional: his/her function is to select and follow the companies in which his investment fund will want to invest. He/she is both a financial and business analyst and a good business strategist, able to sense the opportunities of a market but also the reliability of the people and projects he/she meets on a daily basis.
What is Venture Capital?
Venture Capital is an activity that consists in financing innovative and new companies. This investment targets start-ups and companies with high development potential. Most of the time, the financial investment is coupled with technical and strategic support for the company. The investment fund, which invests its own funds, becomes a shareholder of the company and thus has a share of control over it. This solution is the most common for the financing of start-ups and new projects that do not have a track record that guarantees their success with banks. Venture capital is then the best and often the only solution to find financing for the development of your idea and/or project.
What are the missions of the venture capital analyst?
Venture capital investment funds aim to invest in the best projects in order to make a profit from their investment. This activity involves a great deal of uncertainty, since the sums advanced are in the form of equity capital and the success and therefore the repayment of the financing cannot be guaranteed. Venture Capital, which acts in place of banks that are unable to do so, is therefore required to conduct extensive research and analysis on the start-ups whose development it intends to finance. To do this, they call on the Venture Capital Analyst.
The role of the Venture Capital Analyst is to determine in which companies the money should be invested. To support his analysis, the venture capital analyst will look for information wherever he can find it, because part of his decision lies in his expertise and part in his intuition.
- He evaluates financial reports, commercial files, business plans
- He evaluates the interest and opportunities of the company's market: trends, uses, competition, techniques, etc.
- He/she is constantly on the lookout for innovations and trends in the sectors and/or specialties of his/her portfolio
- He/she meets the founders, managers and any other relevant person: he/she schedules numerous interviews and participates in pitch presentations.
- He participates in team meetings to present his candidate companies and decide whether or not to invest
- He accompanies financed companies in their strategic development.
What are the qualities and skills needed to become a venture capital analyst?
This exciting job has been changing since the emergence of start-ups and high tech digital technologies, which has opened up many opportunities. If it was previously very finance-oriented, it now includes an increasing amount of intuition and projection capacity and thus requires a profile that is very much linked to entrepreneurship and innovation.
- Good knowledge and mastery of corporate finance techniques
- Expertise in business creation and practical and operational skills in entrepreneurship
- Technical understanding of products and services
- Appetence for Tech and the Start-up ecosystem
- Project management
- Writing skills
- Strategic vision
- Expertise in marketing analysis
He/she must also have a rich knowledge of a promising sector such as :
- Privacy Management (security and confidentiality of data),
- Deep Tech (development of innovative products or services),
- Microbiome (knowledge of the body's micro-organisms),
- The social and solidarity economy,
- Artificial intelligence and big data,
- Insuretech, etc.
Training and education
The positions of VC analysts are rare and important, recruiters offer their preference to prestigious degrees (Grandes écoles de commerce and MBA) but also and increasingly to profiles and personality.
To target Venture Capital, a Master's degree in Finance, Entrepreneurship or Strategy is a must. In order to maximize your chances of reaching the venture of your dreams, the choice of a double master's degree in entrepreneurship and finance is a real plus, both in France and abroad.
These degrees are available at the bac +5 level:
In universities (such as Paris Dauphine),
In the french Institutes of Political Studies
In the Top Business Schools,
These schools are always preferred by recruiters because they offer generalist training in management and knowledge of the company and business during the first part of the Grande Ecole program before specializing future graduates in Masters degrees dedicated to the three areas that interest them: finance, start-ups (through entrepreneurship) and consulting.
Business schools also offer students the chance to gain internship experience in a prestigious company in order to acquire a first significant experience in private equity, transaction services, auditing, or fundraising and M&A.
Paris School of Business is typically a school that will allow you to access this profile: it offers all the specialized Masters in the field, and puts entrepreneurship at the heart of its programs by relying on its own incubator.
Salary and career development
The average salary for a venture capital analyst in France is €46,800 gross per year + bonuses ranging from 30 to 100%, which gives an annual salary of around €100K. As his career progresses, the analyst can become an Associate and Senior Associate by obtaining the corresponding income increases. He/she may eventually become a Corporate Venture Capitalist, or Director.