How Venture Capital Works (And How You Fit in as B. Com Graduates)?
The success stories of venture capitalists and marquee exits from companies like Flipkart and MakeMyTrip has propelled the concept of VC into an entity that lurks around to pinpoint revolutionary ideas and make mammoth returns by strategically investing in them. However, the story is only partially correct. And all the decisions are not taken by the investors alone. Venture Capitals, at the end of the day, are a group of one or more funds. Similar to mutual funds and hedge funds, they also house fund managers and a range of executive teams. VCs hire graduates from multiple streams to keep their house running and manage cash flows in specific orders to guarantee profit. It is important to understand the basics of how a VC function to ultimately deduce where you can exactly fit it as a fresh B. Com graduate.
How do Venture Capitals work?
Venture Capitals gather funds from interested partners to invest in avenues that are likely to fetch high returns. The partners are generally veteran investors, insurance companies, college endowments and so on. When a company approaches a VC for funding, money is extended from this pool in exchange for equity in the startup. Once the said company reaches an adequate size, the VC sells its stakes to investment banks or large corporations and distributes the profits among their partners.
The entry and exit from startups are generally short-term. VCs do not stick around like Angel investors throughout the lifetime of the company. Neither do they invest in startups that have just opened their shops. VCs search for growing markets, invests in companies that have the highest probability to grow, and look to exit as soon as they feel that adequate peaks have been reached. Also, VCs are known to invest in solid assets and capital rather than mere ideas. And the combined effects of all these keep their purses growing.
Now, who manages these nuances? Do the partners step in to decide whether to invest in a company or not? This is where the top B. Com colleges in Delhi come in where the top VCs visit to recruit talented individuals who are capable of working with hired fund managers to keep the whole institution together. The salaries are paid by charging a commission on the net fund amount managed and the returns generated. As evident, bigger the venture capital and higher the returns, the more benefits are extended to you in terms of pay.
How to get hired in a Venture Capital?
There is a reason as to why VCs only look for graduates from the best B. Com colleges in Delhi NCR. They need their executives to be expert accountants, proficient in business financing and seamless with basic programming. Reaching the position of fund manager will take time and experience, but even the most basic of profiles in a typical VC requires high-level skills that only a well-trained graduate can bring to the table.
As a B. Com graduate, you will naturally be first through the door of a VC to get hired. Then onwards, you will have to show supreme analytical skills and critical intuition to book a cubicle in your name. You can either be an expert in financial modelling or you can have an eye for reading balance sheets accurately. The tagline of a chartered accountant may place you somewhere higher in the VC hierarchy but you can alsomake a strong case provided your knowledge is solid.
So, if working in a VC seems attractive to you, pay close attention to subjects like accounts, statistics, business financing and more. Use the resources of the top B. Com colleges to build your technical skills in MS Excel or any other accounting or modelling software. Pursue a certification course and develop an entrepreneurial thinking. All your hard work will come back to you as high returns once you land a job in the right VC.
Lingaya’s Lalita Devi Institute of Management & Sciences, affiliated to the IP University and based in South Delhi, is definitely one of the best places to start. The B. Com course of the college is comprehensive enough to propel you in the direction of becoming a fund manager at a venture capital firm. Plus, LLDIMS provides adequate exposure to its students through regular workshops and guest visits to help all graduates plan their future careers strategically and lay the right blocks on their knowledge foundations. This is indeed a golden era for commerce graduates where the job market for them is not limited to banks only. Venture Capitals hold promising career paths and high success peaks for the deserving and skilled candidates.