Once you have your foot in the door at a firm, you have to prove you are a worthwhile investment for the firm. Bain Capital Ventures pays $175,000 base salary and $125,000 bonus for an associate, and it also allow employees to coinvest in their funds, Crowe says. “We’re very sensitive to not wanting the best negotiator to win,” she says. Leslie Crowe, a partner who heads up the people functions at Bain Capital Ventures, says Bain offers associates the same rate across the board. In fact, some top firms don’t allow for negotiations. While it is important to understand the pay structure of anywhere you are working, the compensation conversation might not actually be much of a conversation at all. “It’s important to understand how VCs make money when you’re going in for the negotiation discussion,” because “VCs make 2% of the fund size as management fees, which is how they basically pay their employees,” says Nicole DeTommaso, a senior associate at New York–based Harlem Capital.Ī savvy way to bring up the compensation topic is to ask partners at a firm to lay out how their compensation structure works, why it’s set up that way, and how a fund employee can earn more, says Lionel Foster, who was hired as an investor at real estate technology firm Camber Creek in 2021. Meera Clark, a principal at Redpoint Ventures, points out that “compensation varies dramatically based on AUM.” If you’re working at a multibillion-dollar growth fund versus a seed fund, the pay is going to look different.Ĭompensation is also related to how much the top partners at the firm are making from their funds. Based on the most recent edition, analysts make an average of $92,000 base salary a year, and associates make an average of $137,000. John Gannon publishes an annual salary survey here.For example, the median total compensation for an analyst at an institutional VC in 2022 was $119,000. The Emerging Venture Capitalists Association, a community for early-career investors, publishes an annual compensation survey, which you can find here.However, here are some industrywide resources and data points that can help: The best policy is to ask people who work at the funds you are applying to. “I have people applying to our programs from all over the world-and I think that has highlighted to me that actually entry-level roles really vary,” says Eleanor Kaye, who runs a next-generation investor training center in London called Newton Venture Program. A key thing to know about compensation at venture firms is that it is not uniform.
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