Startup Resources

Understanding the Tradeoffs: VCs versus Startups

Understanding the Tradeoffs: VCs versus Startups

One needs to give the instant gratification versus the delayed gratification a serious thought. One needs to be part proud of the journey that comes with the early-stage company and a VC and take that into consideration when making these choices. – Ashish Fafadia

This BigIdea brings conversation betwen Karthik Reddy and Ashish Fafadia from Blume Ventures. They discuss various aspects of compensation, growth, and ownership in the VC world. Karthik Reddy emphasizes the learning and discovery phase of early career life, suggesting that early 20s should be viewed as an educational period similar to an MBA, especially in venture capital. 

Table of Contents

The learning and discovery phase in early career life

The early 20s are a crucial period for learning and discovery, similar to an educational phase.

This is a time for self-discovery and figuring out what one wants to do in their 30s and 40s.

Working in a venture capital firm during this period can be likened to an MBA-like experience, offering structured learning and the opportunity to work on impactful projects.

Compensation and growth in venture capital

While the compensation in a venture capital firm may not be as high as in other industries, the trade-off is the valuable learning experience it offers.

Venture capital provides a unique opportunity to develop skills in entrepreneurship and risk assessment.

The journey to becoming a great VC typically involves a training ground of 3 to 4 years, where one learns and gains experience.