Management Science , 1984, vol. 30, issue 9, 1051-1066. Get more details https://financial-equity.com/investment/invest-finance/is-public-finance-investment-banking-wso/ The terms of the deal are as follows: VCs generally try to exit the company within a set period of time, usually by initiating an acquisition, merger or an initial public offering (IPO). In 2022, the median time from initial funding to IPO was 5.1 years for U.S. companies, according to a report from WilmerHale using data from the SEC and PitchBook. However, some companies never make it to an IPO and might fail entirely. On the other hand, a very rare few will become “unicorns†and achieve a $1 billion valuation. The level of experience and education someone has greatly impacts their salary in the venture capital industry. For instance, professionals with an MBA often have an edge over others since they possess valuable skills and knowledge that can contribute to the firm's success. Additionally, having a strong network and expertise in deal execution can further enhance your job prospects and salary expectations. Due diligence in venture capital typically involves a thorough analysis of the prospective company's business model, market potential, financial health, legal matters, and the competence of the management team. Firms may use internal resources or hire external experts to conduct specialized assessments. Deal sourcing platforms serve as important tools in the venture capital industry by aggregating deal flow opportunities. These platforms utilize advanced technologies, including AI, to match venture capital firms with relevant startups, streamlining the sourcing process.