What skills does a venture capitalist need?

A venture capitalist needs 15 essential skills including funding methods, business valuation techniques, business analysis, investment analysis, management consulting. Core competencies include .

Will AI replace venture capitalist jobs?

The AI disruption score for venture capitalist is 78/100 (very high risk). Some tasks may be automated but the role will evolve rather than disappear entirely.

Financial ServicesBusiness and administration professionalsISCO 2412

venture capitalist

Venture capitalists invest in young or small start-up companies by providing private funding. They research potential markets and particular product opportunities to help business owners develop or expand a business. They provide business advice, technical expertise, and network contacts based on their experience and activities. They do not assume executive managerial positions within the company, but have a say in its strategic direction.

European Skills Framework

Skills and knowledge areas required for this occupation based on European classification.

Essential (15)

funding methodsfunding methodsThe financial possibilities for funding projects such as the traditional ones, namely loans, venture capital, public or private grants up to alternative methods such as crowdfunding.business valuation techniquesbusiness valuation techniquesThe processes to valuate the worth of the assets of the company and the value of the business following techniques such as asset-based approach, business comparison, and past earnings.business analysisbusiness analysisThe research field which addresses the identification of business needs and problems and the determination of the solutions that would mitigate or prevent the smooth functioning of a business. Busines...investment analysisinvestment analysisThe methods and tools for analysis of an investment compared to its potential return. Identification and calculation of profitability ratio and financial indicators in relation to associated risks to ...management consultingmanagement consultingThe process of giving paid advice with the aim of improving businesses performance and promote their growth.perform business analysisperform business analysisEvaluate the condition of a business on its own and in relation to the competitive business domain, performing research, placing data in context of the business' needs and determining areas of opportu...create a financial plancreate a financial planDevelop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.analyse business plansanalyse business plansAnalyse the formal statements from businesses which outline their business goals and the strategies they set in place to meet them, in order to assess the feasibility of the plan and verify the busine...analyse financial performance of a companyanalyse financial performance of a companyAnalyse the performance of the company in financial matters in order to identify improvement actions that could increase profit, based on accounts, records, financial statements and external informati...decide on providing fundsdecide on providing fundsTake into account the potential risks involved in providing an organisation or project with funding, and which benefits this may deliver the funder, in order to decide on whether to provide the necess...apply technical communication skillsapply technical communication skillsExplain technical details to non-technical customers, stakeholders, or any other interested parties in a clear and concise manner.build business relationshipsbuild business relationshipsEstablish a positive, long-term relationship between organisations and interested third parties such as suppliers, distributors, shareholders and other stakeholders in order to inform them of the orga...assess financial viabilityassess financial viabilityRevise and analyse financial information and requirements of projects such as their budget appraisal, expected turnover, and risk assessment for determining the benefits and costs of the project. Asse...analyse financial riskanalyse financial riskIdentify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.make strategic business decisionsmake strategic business decisionsAnalyse business information and consult directors for decision making purposes in a varied array of aspects affecting the prospect, productivity and sustainable operation of a company. Consider the o...

Optional (23)

investment bankinginvestment bankingThe branch of banking that provides services of capital raising and mergers and acquisitions (M&A).financial forecastingfinancial forecastingThe tool used in performing fiscal financial management to identify revenue trends and estimated financial conditions.international businessinternational businessThe processes related to production or distribution of goods and services across borders.foreign languages for international careersforeign languages for international careersLanguages of the countries in which a potential target labour market would exist to facilitate your career.debt systemsdebt systemsThe processes needed to obtain goods or services before payment and when a sum of money is owed or overdue.modern portfolio theorymodern portfolio theoryThe theory of finance that attempts to either maximise the profit of an investment equivalent to the risk taken or to reduce the risk for the expected profit of an investment by judiciously choosing t...actuarial scienceactuarial scienceThe rules of applying mathematical and statistical techniques to determine potential or existing risks in various industries, such as finance or insurance.holding company activitiesholding company activitiesThe principles, legal actions and strategies of a holding company such as influencing the management of a firm through the acquirement of outstanding stock and other means, more specifically by influe...credit control processescredit control processesThe various techniques and procedures applied to ensure that credit is given to the suitable customers and that they pay on time.apply credit risk policyapply credit risk policyImplement company policies and procedures in the credit risk management process. Permanently keep company's credit risk at a manageable level and take measures to avoid credit failure.make investment decisionsmake investment decisionsDetermine whether to buy or sell financial products such as fonds, bonds or stocks in order to enhance profitability and to reach the best performance.analyse loansanalyse loansExamine and analyse the loans provided to organisations and individuals through different forms of credit such as overdraft protection, export packing credit, term loan, and purchase of commercial bil...maintain client debt recordsmaintain client debt recordsPreserve a list with the debt records of clients and update it regularly.analyse market financial trendsanalyse market financial trendsMonitor and forecast the tendencies of a financial market to move in a particular direction over time.liaise with financiersliaise with financiersLiaise with people willing to finance the project. Negotiate deals and contracts.develop investment portfoliodevelop investment portfolioCreate an investment portfolio for a customer that includes an insurance policy or multiple policies to cover specific risks, such as financial risks, assistance, reinsurance, industrial risks or natu...review investment portfoliosreview investment portfoliosMeet with clients to review or update an investment portfolio and provide financial advice on investments.examine credit ratingsexamine credit ratingsInvestigate and look for information on the creditworthiness of companies and corporations, provided by credit rating agencies in order to determine the likelihood of default by the debtor.obtain financial informationobtain financial informationGather information on securities, market conditions, governmental regulations and the financial situation, goals and needs of clients or companies.manage contractsmanage contractsNegotiate the terms, conditions, costs and other specifications of a contract while making sure they comply with legal requirements and are legally enforceable. Oversee the execution of the contract, ...perform debt investigationperform debt investigationUse research techniques and tracing strategies to identify overdue payment arrangements and address them.establish investment fundsestablish investment fundsSet up a mutual fund in order to aggregate the funds of a larger number of investors and benefit from the advantages of working as part of a group.budget for financial needsbudget for financial needsObserve the status and availability of funds for the smooth running of projects or operations in order to foresee and estimate the quantity of future financial resources.