I currently work in investment banking, and while I want to transition into VC, I’m concerned about the pay difference. Some people say that entry-level VC roles don’t pay nearly as well as banking or private equity. Is that true, and if so, is the long-term career upside worth the initial financial hit?
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Do I need to take a pay cut to break into venture capital?
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Rita
on Mar 06, 2025
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Excel in Finance | FREE 15 Minutes Intro Call | Personalised Preparation
Hey hey,
In most cases, yes, moving from IB to VC often comes with a pay cut, especially at the junior level. Base salaries and bonuses in VC typically don’t match what you’d earn in banking or PE, at least initially. However, compensation structures in VC can vary widely depending on the firm, location, and whether a share of investment profits is part of the package.
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Rita
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