The 6 main responsibilities of a junior VC

Hi! I’m glad you’re here. You’ve made it to issue #37 of VC Demystified🪄.

My name’s Nicole - I’m a Principal at an early stage venture fund, and I know firsthand that VC can often be a black box. Breaking into the industry may feel daunting and resources can seem scarce and inaccessible. I wanted to put together a newsletter to give others the playbook I wish I had when I first started.

Happy New Year! If your goal this year is to break into VC or raise VC funding, you got this! As always, if you have any topics that you would like to learn more about, please shoot me a note. I’d love to hear from you.

Today’s deep dive: A detailed breakdown of a junior VC’s responsibilities

My personal mission is to open as many doors as possible for other people and this newsletter is just one avenue to do that. As always, I will continue to post VC insights daily across my socials for those of you who prefer those channels.

A detailed breakdown of a junior VC’s responsibilities

Being a junior investor in venture capital is super exciting.

But what’s the day-to-day actually like? While it can vary depending on the firm’s size, stage, industry focus, and more, here’s a breakdown of what junior investors typically get up to.

1. Finding Cool Companies (Deal Sourcing)

A big part of the job is hunting down promising startups and figuring out if they’re a good fit. This means:

• Meeting People: Going to industry events, demo days, and meetups to connect with founders and other folks in the startup world.

• Cold Emails & DMs: Reaching out to startups that catch your eye and fit the firm’s investment focus.

• Staying in the Loop: Keeping tabs on other investors, accelerators, and founders so you’re always in the know about what’s hot.

This is a big reason why you’re always on calls and at events as a VC.

Note some roles don’t require sourcing at all, while others are mostly sourcing focused. Be sure to ask during your interview process.

2. Diving into Research (Market Analysis)

You’ll spend a lot of time digging into markets to figure out what’s happening and where the opportunities are. This includes:

• Exploring Industries: Researching different sectors to understand what’s working and what’s not.

• Spotting Trends: Keeping up with the latest tech, funding rounds, and market shifts.

• Sharing Insights: Putting together reports or presentations to keep the team up to speed.

This is a big reason why VCs are online often. Platforms like LinkedIn, X, and Reddit, among others, are great ways to keep tabs on the latest news/trends in real time.

Note some VC firms are thesis-driven or thematic, which means they only invest in companies that fall within an industry they have deep market research and understanding in. If you work at a firm like that, then your role will be very research heavy.

3. Due Diligence

When a startup looks promising, junior investors help figure out if it’s the real deal. This involves:

• Checking the Numbers: Reviewing financials, growth metrics, and other data to see how the company’s performing.

• Talking to Founders: Chatting with the team to understand their vision and how they’re making it happen.

• Asking Around: Doing reference checks with customers, partners, or other investors to get a fuller picture.

This is where the technical skills come in. You perform various different analyses to evaluate the startup you’re considering for investment. Analyses include revenue builds, market sizing, cohort analyses, public comps, and VC exit models.

Note diligence is typically lighter the earlier you play (i.e. preseed diligence is lighter/faster than Series A diligence). Also diligence is usually lighter if the firm doesn’t lead or co-lead rounds. Be sure to ask these questions.

Subscribe to Premium to read the rest.