Associate - This is an entry-level position. Associates basically work as support teams for sourcing deals, and assist partners with the work. The entry is generally for MBAs from premium business schools with good academic records.

Senior Associate - This role happens after two to three years as an Associate and is a continuation of that role. After this role, people generally come on the track for becoming partner.

Partner / Vice President - They generally receive a share of revenue as well as annual profits. They have expertise in the area they are investing in, and are generally experienced finance professionals, ex-consultants or entrepreneurs themselves.

Limited Partner - Investors in venture capital funds are called limited partners. They comprise both high-net-worth individuals as well as institutions with funds.

Venture Partner - Venture Partners work on deals and receive fees only on deals that they work with rather than general partners who get a fee on all deals.

Entrepreneur in Residence - This is a temporary six- to twelve-month role for people who work on developing business ideas within the Venture Fund, and then typically move on to become Chief Technology Officer at the companies they found.

Tasks Involved in Venture Capital

Due Diligence - Studying the proposals for feasibility and auditing the credentials for the same.

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* Ajay Ohri is an alumnus of IIM Lucknow, and has worked with some of the largest BPOs in India (including two BPOs listed on NYSE).
Currently, he is running his own database consulting firm, and is the founder of his website business
http://decisionstats.com.
The views expressed in the article are his personal views.
Article posted on August 4, 2008.