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Here’s How Much Recent Grads Make in Venture

Welcome back to the May edition of our Thelander Digest. It is commencement season, which means many graduates will soon be in the market for jobs that will jumpstart their earnings and their career. Among hopeful jobseekers are those who wish to dip their toes in venture capital, an increasingly difficult industry to break into.

With thousands of job openings in the US, the question remains – how much money can entry-level job seekers earn in venture capital and what negotiating power do they really have?

According to data from J.Thelander Consulting: 

  • Total cash is on the rise. VC associates can expect to earn $150,000 in total cash, up 15% from 2021. 
  • Carried interest is holding steady. Associates can also negotiate carried interest into their compensation package. At the median, associates earn about 1% in carried interest, which has remained consistent over the past four years. Carried interest is a percentage of a fund’s investment profits that employees and fund managers receive as compensation. 
Associate Median Total Cash and Carry

The 75th %ile for total cash and carried interest looks different, which is typically reserved for top talent. 
Hires among those ranks can expect to earn upwards of $190,000 out of the gate, along with 1.5% of carried interest. The cash is up and carried interest is down YoY. One of the reasons being that the vesting time is getting longer so associates may be more keep on taking more cash and less cary as they anticipate advancing their career by moving to another firm.

Associate 75th %tile Total Cash and Carry

The average time for associates to get promoted to the next level is just under two and a half years resulting in an average of 32% more in total cash and half a percentage point more in carry.

How many years does a person typically stay in a position before being promoted?

And, promotions are never a guarantee. 
This year, just 20% of VC firms say they’ve promoted a non-partner to partner. This likely means only those who are among the top performers can expect to ascend the VC job ladder. 

Have you promoted a non-partner- to partner this year?

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