Principals typically have two to six years of experience as venture capital associates, or they have extensive industry experience (e.g., telecommunications, medical devices, consumer products, engineering, software). Most importantly, they need to provide evidence of their expertise in deal sourcing and structuring, due diligence, and business planning (including financial modeling).
Principals need excellent communication and interpersonal skills because they frequently attend investment meetings, interact with senior-level professionals at banks and equity groups as well as with current and prospective investors, and prepare written reports and financial documents. Other important traits include strong analytical capabilities, financial modeling proficiency, intellectual curiosity, high ethical standards, confidence, good organizational skills, curiosity, creativity, impeccable schmoozing talents, and the ability to excel in a fast-paced and demanding work environment.