The Web site MergersandAcquisitions.com reported that VC principals may earn salaries that range from $250,000 to $400,000. Some may earn as much as $1 million or more per year.
Principals receive benefits such as vacation days, sick leave, health and life insurance, and a 401(k) or other retirement savings plan. In addition, they are eligible for lucrative perks such as co-investment opportunities, carry, and closing bonuses. Co-investment is the opportunity for the principal to invest his or her own money alongside the firm in some deals. If a fund is successful, the return on their investment can greatly exceed salary and bonuses. Some principals also receive carry, which is a percentage of the profits the firm makes. Finally, principals may receive closing bonuses for sourcing or doing due diligence when an investment is closed. Most early stage firms do not give this lower-level bonus, although some do.