190 lines
5.4 KiB
Markdown
190 lines
5.4 KiB
Markdown
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---
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title: Venture Capitalist
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TARGET DECK: Obsidian::H&SS
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FILE TAGS: startups::vc
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tags:
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- startups
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---
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## Overview
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A **venture capitalist** (VC) is an investor who provides capital to companies in exchange for an equity stake on behalf of a firm. A firm comprises of the following roles (in order of seniority):
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* **Managing director** (MD) or **general partner** (GP). The VCs that make the final investment decisions and sit on the boards of directors of the companies they invest in.
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* **Principal** or **director**. Junior deal professionals looking to become managing directors.
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* **Associate**. Work for one or more deal partners, usually a managing director.
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* **Analyst**. Individuals with similar responsibilites as the associate, though usually less deal-centric.
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%%ANKI
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Basic
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What is VC short for?
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Back: **V**enture **c**apitalist.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718878788273-->
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END%%
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%%ANKI
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Basic
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What ambiguity does the term "VC" introduce?
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Back: It may refer to a VC firm or an individual of said firm.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718878788303-->
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END%%
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%%ANKI
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Cloze
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Typically VCs provide {capital} in exchange for {equity}.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718878788311-->
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END%%
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%%ANKI
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Basic
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How is a "venture capitalist" defined?
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Back: An investor who provides capital to companies, on behalf of a firm, in exchange for equity.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718878788328-->
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END%%
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%%ANKI
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Basic
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What form of capital does a VC typically work in?
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Back: Cash flow.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718878788334-->
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END%%
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%%ANKI
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Basic
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Within a VC firm, what does MD stand for?
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Back: **M**anaging **d**irector.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718878788338-->
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END%%
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%%ANKI
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Basic
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Within a VC firm, what does GP stand for?
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Back: **G**eneral **p**artner.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718878788342-->
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END%%
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%%ANKI
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Basic
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With respect to a VC firm, what does a "managing director" refer to?
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Back: A senior VC, generally responsible for making final investment decisions.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718879311552-->
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END%%
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%%ANKI
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Basic
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With respect to a VC firm, what does a "general partner" refer to?
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Back: A senior VC, generally responsible for making final investment decisions.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718878788345-->
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END%%
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%%ANKI
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Cloze
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A {general partner} is also known as a {managing director}.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718878788348-->
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END%%
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%%ANKI
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Cloze
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The {principal/director} role follows the {MD/GP} role in seniority.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718878788353-->
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END%%
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%%ANKI
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Basic
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With respect to a VC firm, what does a "principal" refer to?
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Back: A VC working their way up to becoming a GP.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718878788357-->
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END%%
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%%ANKI
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Basic
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With respect to a VC firm, what does a "director" refer to?
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Back: A VC working their way up to becoming an MD.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718879311558-->
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END%%
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%%ANKI
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Cloze
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A {principal} is also known as a {director}.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718878788361-->
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END%%
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%%ANKI
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Basic
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What types of VCs are grouped under term "deal partner"?
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Back: GPs and principals.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718878788368-->
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END%%
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%%ANKI
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Basic
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What distinguishes VCs from angel investors?
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Back: The former use a pool of investors' money. The latter uses their own money.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718879311563-->
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END%%
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%%ANKI
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Cloze
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The {associate} role follows the {principal/director} role in seniority.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718879311566-->
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END%%
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%%ANKI
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Cloze
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The {analyst} role follows the {associate} role in seniority.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718879311572-->
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END%%
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%%ANKI
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Basic
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How are analysts and associates typically distinguished?
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Back: The latter are usually more deal-centric than the former.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718879311577-->
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END%%
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%%ANKI
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Basic
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What role is a recent college graduate likely given at a VC firm?
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Back: Analyst.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718879311581-->
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END%%
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%%ANKI
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Basic
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With respect to a VC firm, what does an "associate" refer to?
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Back: An employee usually working directly for one or more deal managers.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718879311586-->
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END%%
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%%ANKI
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Basic
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With respect to a VC firm, what does an "analyst" refer to?
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Back: An employee working on general functions for the firm.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1718879311590-->
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END%%
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## Bibliography
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* Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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