---
title: Venture Capitalist
TARGET DECK: Obsidian::H&SS
FILE TAGS: startups::vc
tags:
  - startups
---

## Overview

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):

* **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.
* **Principal** or **director**. Junior deal professionals looking to become managing directors.
* **Associate**. Work for one or more deal partners, usually a managing director.
* **Analyst**. Individuals with similar responsibilites as the associate, though usually less deal-centric.

%%ANKI
Basic
What is VC short for?
Back: **V**enture **c**apitalist.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718878788273-->
END%%

%%ANKI
Basic
What ambiguity does the term "VC" introduce?
Back: It may refer to a VC firm or an individual of said firm.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718878788303-->
END%%

%%ANKI
Cloze
Typically VCs provide {capital} in exchange for {equity}.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718878788311-->
END%%

%%ANKI
Basic
How is a "venture capitalist" defined?
Back: An investor who provides capital to companies, on behalf of a firm, in exchange for equity.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718878788328-->
END%%

%%ANKI
Basic
What form of capital does a VC typically work in?
Back: Cash flow.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718878788334-->
END%%

%%ANKI
Basic
Within a VC firm, what does MD stand for?
Back: **M**anaging **d**irector.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718878788338-->
END%%

%%ANKI
Basic
Within a VC firm, what does GP stand for?
Back: **G**eneral **p**artner.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718878788342-->
END%%

%%ANKI
Basic
With respect to a VC firm, what does a "managing director" refer to?
Back: A senior VC, generally responsible for making final investment decisions.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718879311552-->
END%%

%%ANKI
Basic
With respect to a VC firm, what does a "general partner" refer to?
Back: A senior VC, generally responsible for making final investment decisions.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718878788345-->
END%%

%%ANKI
Cloze
A {general partner} is also known as a {managing director}.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718878788348-->
END%%

%%ANKI
Cloze
The {principal/director} role follows the {MD/GP} role in seniority.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718878788353-->
END%%

%%ANKI
Basic
With respect to a VC firm, what does a "principal" refer to?
Back: A VC working their way up to becoming a GP.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718878788357-->
END%%

%%ANKI
Basic
With respect to a VC firm, what does a "director" refer to?
Back: A VC working their way up to becoming an MD.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718879311558-->
END%%

%%ANKI
Cloze
A {principal} is also known as a {director}.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718878788361-->
END%%

%%ANKI
Basic
What types of VCs are grouped under term "deal partner"?
Back: GPs and principals.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718878788368-->
END%%

%%ANKI
Basic
What distinguishes VCs from angel investors?
Back: The former use a pool of investors' money. The latter uses their own money.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718879311563-->
END%%

%%ANKI
Cloze
The {associate} role follows the {principal/director} role in seniority.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718879311566-->
END%%

%%ANKI
Cloze
The {analyst} role follows the {associate} role in seniority.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718879311572-->
END%%

%%ANKI
Basic
How are analysts and associates typically distinguished?
Back: The latter are usually more deal-centric than the former.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718879311577-->
END%%

%%ANKI
Basic
What role is a recent college graduate likely given at a VC firm?
Back: Analyst.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718879311581-->
END%%

%%ANKI
Basic
With respect to a VC firm, what does an "associate" refer to?
Back: An employee usually working directly for one or more deal managers.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718879311586-->
END%%

%%ANKI
Basic
With respect to a VC firm, what does an "analyst" refer to?
Back: An employee working on general functions for the firm.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1718879311590-->
END%%

## Bibliography

* Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.