How much carry do VC associates get?

Carry is the percentage of investment profits that partners get paid plus fund management fees. It is typically about 20 to 30 percent of an exit by a portfolio company, and it can be a serious payout.

How does carry work for VCS?

What Is A Carry? VC fund managers look to the carry (also known as the “carried interest”, “promote”, “back end”, etc.) as their primary form of compensation. The carry is the GP’s share of any profits realized by the fund’s investors, and can run from 15\% to 30\% but will typically be 20\%.

How much does senior associate make venture capital?

Salary Ranges for Senior Associate, Venture Capital Groups / Strategic Analyticss. The salaries of Senior Associate, Venture Capital Groups / Strategic Analyticss in the US range from $33,530 to $120,460 , with a median salary of $62,150 .

What is a 20\% carry?

The incentive pay is what makes VC attractive to employees and general partners. With a 20\% carried interest provision, general partners earn 20 cents for every dollar of return to limited partners in the fund.

Do associates get carry in VC?

associates at larger, well-established venture firms don’t earn any carry.

How is fund carry calculated?

Carry is calculated as a percentage—typically between 20\% and 30\%*—of the return on investment after limited partners have been paid out 1X their investment. Carry is split (though not always equally) between partners.

What is a 10\% carry?

For example, an employee might get 10\% carry allocation that vests over a five year period. If they leave before the five years, they would only earn the amount that has vested over that time.

How much is PE carry?

Carry typically averages about 20\% of the fund’s profits and ranges from as high as 50\% in exceptional cases to as low as in the single digits. With the proliferation of private equity funds, there is increasing downward pressure on carry as fund managers compete with each other to attract investor capital.

How much do venture capital firms pay associates?

Traditional VC associates were bringing in an average of $153,000 in total compensation. Corporate VC associates made slightly less at $142,000. Senior associates, according to Gannon, are often post-MBA, or they’ve been promoted up from analyst and associate into the position.

What does venture capital compensation look like?

Below is a rough guide to venture capital compensation at various levels of seniority. From analysts and associates to managing directors, venture capital salary is traditionally heavily weighted toward the bonus portion of the compensation as well as carry.

Is the venture capital associate path overlooked?

While everyone is obsessed with exit opportunities into hedge funds and private equity, the Venture Capital Associate path often gets overlooked. One reason is the pay: VC Associates do not earn what PE Associate s, or even IB Associate s, do.

What is the starting pay for a vice president at valueventure capital?

Venture Capital Compensation 1 Analyst $ 80K – $ 150K 2 Associate $ 130K – $ 250K 3 Vice Presidents $ 200K – $ 250K + $ 0-1MM carry bonus 4 Principal/Junior MD $ 500K – $ 700K + $ 1-2 MM carry bonus 5 Managing Directors/Partners $ 1MM + $ 3-9MM carry bonus