Guide to Venture Capital

Customizedfor:JinZeng([e-mail])ShanghaiJiaoTongAntaiCollegeofEconomics&ManagementOnlineCareerLibraryThemedia’swatchingVault!Here’sasamplingofourcoverage.“Forthosehopingtoclimbtheladderofsuccess,[Vault’s]insightsarepriceless.”–Moneymagazine“Thebestplaceonthewebtoprepareforajobsearch.”–Fortune“[Vaultguides]makeforexcellentstartingpointsforjobhuntersandshouldbepurchasedbyacademiclibrariesfortheircareersections[and]universitycareercenters.”–LibraryJournal“Thegranddaddyofworkersites.”–USNewsandWorldReport“Akillerapp.”–NewYorkTimesOneofForbes’33“FavoriteSites”–Forbes“Togettheunvarnishedscoop,checkoutVault.”–SmartMoneyMagazine“Vaulthasawealthofinformationaboutmajoremployersandjob-searchingstrategiesaswellascommentsfromworkersabouttheirexperiencesatspecificcompanies.”–TheWashingtonPost“Akeyreferenceforthosewhowanttoknowwhatittakestogethiredbyalawfirmandwhattoexpectoncetheygetthere.”–NewYorkLawJournal“Vault[provides]theskinnyonworkingconditionsatallkindsofcompaniesfromcurrentandformeremployees.”–USATodayCustomizedfor:JinZeng([e-mail])ShanghaiJiaoTongAntaiCollegeofEconomics&ManagementOnlineCareerLibraryCustomizedfor:JinZeng([e-mail])ShanghaiJiaoTongAntaiCollegeofEconomics&ManagementOnlineCareerLibraryCAREERSVENTURECAPITALVENTURECAPITAL©2008Vault.com,Inc.VAULTCAREERGUIDETOBYOLEGKAGANOVICH,JAMESCURRIER,JOEBELBRUNOandthestaffofvaultCustomizedfor:JinZeng([e-mail])ShanghaiJiaoTongAntaiCollegeofEconomics&ManagementOnlineCareerLibraryCopyright©2008byVault.com,Inc.Allrightsreserved.Allinformationinthisbookissubjecttochangewithoutnotice.Vaultmakesnoclaimsastotheaccuracyandreliabilityoftheinformationcontainedwithinanddisclaimsallwarranties.Nopartofthisbookmaybereproducedortransmittedinanyformorbyanymeans,electronicormechanical,foranypurpose,withouttheexpresswrittenpermissionofVault.comInc.Vault,theVaultlogo,and“TheMostTrustedNameinCareerInformationTM”aretrademarksofVault.comInc.Forinformationaboutpermissiontoreproduceselectionsfromthisbook,contactVault.comInc.,75VarickStreet,8thFl.NewYork,NY10013,[phone].LibraryofCongressCIPDataisavailable.ISBN13:978-1-58131-610-0ISBN10:1-58131-610-0PrintedintheUnitedStatesofAmericaCustomizedfor:JinZeng([e-mail])ShanghaiJiaoTongAntaiCollegeofEconomics&ManagementOnlineCareerLibraryACKNOWLEDGMENTSWeareextremelygratefultoVault’sentirestaffforalltheirhelpintheeditorial,productionandmarketingprocesses.Vaultalsowouldliketoacknowledgethesupportofourinvestors,clients,employees,familyandfriends.Thankyou!Customizedfor:JinZeng([e-mail])ShanghaiJiaoTongAntaiCollegeofEconomics&ManagementOnlineCareerLibraryFormoreinformationgoto’saward-winningfinancecareerinformation•Employeesurveyson100softopfinanceemployerswithinsiderinfoon:•Firmculture•Salariesandcompensation•Hiringprocessandinterviews•Businessoutlook•Accessto100+extendedinsiderfinanceemployerprofiles•CompleteaccesstoVault'sexclusivefinancefirmrankings,includingqualityofliferankings15%OFFallVaultpurchases,includingVaultGuideandFinanceEmployerProfiles,Vault'sFinanceInterviewPrepandVaultResumeReviews(theWSJ’s“topchoice”)•InsidersalaryinfowithVault'sFinanceSalaryCentral•Studentandalumnisurveysfor100softopMBAprogramsandlawschools•ReceiveVault'sFinanceJobAlertsoftopjobspostedontheVaultFinanceJobBoard•AccesstocompleteVaultmessageboardarchivesCustomizedfor:JinZeng([e-mail])ShanghaiJiaoTongAntaiCollegeofEconomics&ManagementOnlineCareerLibraryVisittheVaultFinanceCareerChannelat–withinsiderfirmprofiles,messageboards,theVaultFinanceJobBoardandmore.viiCAREERLIBRARYINTRODUCTION1THESCOOP3Chapter1:WhatisVentureCapital?5AHistoryofVC.............................................…5WhatGoesUpMustComeDown.................................9Chapter2:TheFinancialIndustryandVentureCapital13IndustryTrends..............................................17Chapter3:TheNutsandBoltsofVentureCapital21StagesofVentureCapitalInvestment.............................21The“Capital”inVentureCapital.................................23HowVentureCapitalFundsareFundedandStructured...............24GETTINGHIRED31Chapter4:TheHiringProcess33Overview...................................................33GainingExposure............................................34CareerPath..................................................36JobTitles...................................................37TargetingtheFirmYouWant....................................39Chapter5:VentureCapitalInterviews41GettingtheInterview..........................................41TableofContentsCustomizedfor:JinZeng([e-mail])ShanghaiJiaoTongAntaiCollegeofEconomics&ManagementOnlineCareerLibraryAcingtheInterview...........................................43SampleExpertiseQuestions....................................45SampleProcessQuestions......................................46SamplePersonality/FitQuestions................................48ONTHEJOB51Chapter6:TrainingandResponsi