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Hedge Funds vs. Venture Capitalist
Matt Ober
February 12, 2025
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Very similar but very different. Having worked at hedge funds and now in the VC space, I get asked a lot what is the difference?
I spent 10+ years in the hedge fund space. Quant and traditional Long/Short. Working at a hedge fund is intense. When the markets are open, you are always on. Things can change over the weekend or overnight and that can affect your day or your year. The competition is fierce. If you like competing, then its great, its exciting. It’s what made me want to join. On top of keeping up with the markets, the politics within hedge funds are intense. I always joked with my teams that it was a Game of Thrones. Or I would say, “You never know when someone is going to try to drop a piano on your head.” Long way of saying, that everyone is always coming for you and your job. The more senior you get, the more haters you will have and the more people will try to take what you have accomplished. In the hedge fund space, I always think of 10/1/1. 10 months of work, 1 month of positioning how well you did to your superiors, 1 month of praying you get the bonus you want, that will change your life.
Venture capital is a bit different. Lot less politics and the payouts are spread out over a lot longer time periods. No longer do you have annual payouts and instead you are waiting for exits. Praying to the M&A & IPO Gods for liquidity events. In a sense its refreshing because you can think and work long term. We get paid to back the best founders that have 10-year or longer visions.
Similarly, I think hedge funds and venture capital are stressful yet exciting places to be. You are on the cutting edge of technology and tools. You are in the information flow. Having access to information is such a unique asset. Both industries require you, especially as you rise through the ranks, to be a therapist. Either you are taking inbounds from founders or inbounds from your team in the hedge fund space. Helping them through tough decisions, problems or just listening as they vent.
Do I prefer the VC life or the Hedge Fund life more? I love what I do now and wouldn’t change anything. That being said, I think the hedge fund experience is something I will never take for granted. I had the unique opportunity to see different strategies, and different types of leaders, and have some of the most memorable stories.
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