Profession venture capitalist

Venture capitalists invest in young or small startup companies by providing private funding. They research potential markets and particular product opportunities to help business owners develop or expand a business. They provide business advice, technical expertise, and network contacts based on their experience and activities. They do not assume executive managerial positions within the company, but have a say in its strategic direction.

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Personality Type

  • Conventional / Investigative
  • Enterprising / Conventional

Knowledge

  • Investment analysis

    The methods and tools for analysis of an investment compared to its potential return. Identification and calculation of profitability ratio and financial indicators in relation to associated risks to guide decision on investment.

  • Funding methods

    The financial possibilities for funding projects such as the traditional ones, namely loans, venture capital, public or private grants up to alternative methods such as crowdfunding.

  • Business valuation techniques

    The processes to valuate the worth of the assets of the company and the value of the business following techniques such as asset-based approach, business comparison, and past earnings.

  • Business analysis

    The research field which addresses the identification of business needs and problems and the determination of the solutions that would mitigate or prevent the smooth functioning of a business. Business analysis comprises IT solutions, market challenges, policy development and strategic matters.

Skills

  • Create a financial plan

    Develop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.

  • Analyse business plans

    Analyse the formal statements from businesses which outline their business goals and the strategies they set in place to meet them, in order to assess the feasibility of the plan and verify the business' ability to meet external requirements such as the repayment of a loan or return of investments.

  • Decide on providing funds

    Take into account the potential risks involved in providing an organisation or project with funding, and which benefits this may deliver the funder, in order to decide on whether to provide the necessary funds or not.

  • Assess financial viability

    Revise and analyse financial information and requirements of projects such as their budget appraisal, expected turnover, and risk assessment for determining the benefits and costs of the project. Assess if the agreement or project will redeem its investment, and whether the potential profit is worth the financial risk.

  • Analyse financial risk

    Identify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.

  • Analyse financial performance of a company

    Based on accounts, records, financial statements and external information of the market, analyse the performance of the company in financial matters in order to identify improvement actions that could increase profit.

  • Perform business analysis

    Evaluate the condition of a business on its own and in relation to the competitive business domain, performing research, placing data in context of the business' needs and determining areas of opportunity.

  • Apply technical communication skills

    Explain technical details to non-technical customers, stakeholders, or any other interested parties in a clear and concise manner.

  • Build business relationships

    Establish a positive, long-term relationship between organisations and interested third parties such as suppliers, distributors, shareholders and other stakeholders in order to inform them of the organisation and its objectives.

  • Make strategic business decisions

    Analyse business information and consult directors for decision making purposes in a varied array of aspects affecting the prospect, productivity and sustainable operation of a company. Consider the options and alternatives to a challenge and make sound rational decisions based on analysis and experience.

Optional knowledge and skills

actuarial science establish investment funds budget for financial needs debt systems credit control processes obtain financial information analyse loans maintain client debt records examine credit ratings holding company activities apply credit risk policy liaise with financiers perform debt investigation make investment decisions modern portfolio theory manage contracts financial forecasting develop investment portfolio analyse market financial trends review investment portfolios

Common job titles

  • Venture capital associate
  • Venture capital associate (healthcare)
  • Principal
  • Research engineer
  • Office manager
  • Executive intern (with stipend)
  • Co-founder and start-up mentor
  • Innovation technical leader
  • Systems engineer