Stephen Fleming is a venture capitalist. He is quick to admit that it's
a risky job. "You're investing millions of dollars of other people's
money. If you make a mistake, there's no way to hide it. You have to
be willing to take substantial risks, and know you're going to have to
explain why some of them didn't work out."
But when a promising company catches the eye of a venture capitalist, great
things can happen. That's the passion and excitement that drives Fleming
on a daily basis. "You're helping to create new companies, new opportunities,
new jobs and new wealth. Most high-tech companies today wouldn't exist
if venture capitalists hadn't decided to take a risk with them.
"It's a creative, challenging job you can do for 50 years and still
learn something new every day."
Fleming regularly clocks an average of 10 hours per day on the job.
"There are only a couple thousand venture capitalists around, and most
entrants already know someone in the business. Once you leave school, get
some start-up experience, work hard to excel at it and make sure that any
venture capitalists you meet know that you're interested in breaking
into the business," adds Fleming.
Ann Winblad, who is also a venture capitalist, describes the career this
way: "We're the coaches of teams that are in the playoffs every day.
Coaching is different than being a player, but no less challenging."
Winblad spent most of her professional career in software -- 24 years in
total. She encourages people to become great at their profession. Then --
and only then -- they should decide if they want to move from being a player
to a coach. "Build a company first! This is the era of the entrepreneur!"
Although venture capital is hard work, venture capitalist Jane Patterson
says the career is interesting and rewarding. "You'll never be bored.
You work with bright and motivated people."
This is a tough business world: numerous business plans are presented,
but very few are selected for investment. "The hardest part is finding the
right investment opportunity," admits Patterson. "You can go through 100 business
plans and a small percentage may be promising."
But to Patterson, that's one of the most exciting aspects of the job.
"Every day is different. It really can be a Pandora's box. Getting involved
with entrepreneurs and expanding businesses -- it's very rewarding to
close a transaction."
Usually, it takes anywhere from three to six months to close a deal.
"I might see 20 proposals a week, and only one of those will get a serious
look," says venture capitalist Sam Ifergan. "Less than one percent, on average."
Venture capitalists make investments to drive growth. Ifergan, who is the
president of a venture capital firm, believes the best part of the job is
seeing a company succeed. "It's also interesting to see people's
businesses and the different ideas they present. You see everything -- every
shape and type of business."
A successful venture capitalist must be highly analytical, social and no
nonsense. "People who are successful in this field are pragmatic and down
to earth -- they'll also tell you the work is very interesting!" says
Patterson.
But if you pursue the right education and fill in with a background rich
in business and technical experience, your personal investment in this career
can pay off -- big!