Venture Capital

Venture capital consists of funds obtained from backers that are invested in young, innovative companies (often in the tech and health care sectors) in exchange for an equity stake that hopefully can be translated into a profit when the company goes public or is merged with or sold to another company. The National Venture Capital Association (NVCA) reports that “venture investing generates billions of dollars for investors [and] their institutions, and creates millions of jobs.” Some of America’s most well-known businesses were founded with the help of venture capital, including Facebook, Apple, Amazon, Whole Foods Market, Google, FedEx, Starbucks, Staples, Dropbox, and Intel. Forty-two percent of U.S.-produced drugs approved by the Food & Drug Administration between 2009 and 2018 originated with venture capital funding, according to research released by Silicon Valley Bank.

Associates, analysts, managing partners, general partners, and entrepreneurs in residence are the key players in this industry, but venture capital firms also need chief financial officers, controllers, accountants, lawyers, and marketing, public relations, computer security, information technology, and office workers.

Venture capital firms are located throughout the United States, although most are headquartered in major cities. There are also opportunities throughout the world—especially in Europe, Israel, China, and India. Africa, Latin America, and Southeast Asia also have burgeoning venture capital sectors. As of June 2025, the U.S. venture capital and principal trading industry employed 119,000 people, according to the data analytics firm IBISWorld. Most VC firms have fewer than 15 employees. Many funds have only a few partners and support staff (e.g., secretaries, receptionists). As a result, VC firms need new hires to hit the ground running and begin producing immediately. This means that there are few opportunities (except in support positions) for those with just a bachelor’s degree and no industry experience. Most venture capital firms seek workers with a college degree, plus several years of experience at a management consulting firm, private equity firm, or investment bank. Others seek experienced professionals from the information technology, health services, engineering, or biotech sectors, or offer partnerships to successful entrepreneurs who are in their 30s and 40s.

Venture capital partners have excellent earnings. Managing general partners/chief executive officers at venture capital firms received base salaries of $325,725 and total cash compensation of $508,569 in 2021 (the latest year for which data is available), according to Compensation and Employment in the Private Capital Industry, from Preqin and Ferguson Partners.

There were 3,111 VC firms in existence at the end of 2024, according to the National Venture Capital Association (NVCA), up from 1,652 in 2012. These firms managed 7,969 venture funds (up from 2,499 in 2015) and had more than $1.2 trillion in U.S. venture capital assets under management (a significant increase from the $370.4 billion in AUM in 2015). In 2024, venture capital firms invested about $215 billion into 14,320 companies, according to the NVCA. The largest areas of venture capital investment were in artificial intelligence and healthcare/life sciences, collectively capturing 67 percent of total capital invested. New commitments to venture capital funds in the United States increased to $76 billion, up significantly from $51 billion in 2019. Venture capital firms in California, Massachusetts, and New York comprise a large percent of total U.S. VC assets under management. The NVCA says that "while coastal hubs remained robust, there was broad-based growth in VC activity across the country with the majority of states seeing increased activity and emerging hubs like Houston ($1.7 billion in investment) and Miami ($2.1 billion in investment) exhibiting particular strength."