Connect with us

Education

Librarian Jobs – Education, Work and Average Salary

Published

on

A librarian obviously works in a library, but librarians can specialize in either user services, technical services or administrative services. While these specialties require a particular background and educational focus, all librarians today come to the job with at least an education in library science and some background in information technology.

Librarian Salaries

According to the Bureau of Labor Statistics, the median annual salary for librarians was $52,530 in 2016. The lowest 10 percent received below $33,190, and the highest 10 percent received above $81,130. Librarians working for the federal government earned an average of $84,796 in 2017. Librarians working for state and local governments earned approximately $48,000, while those working in educational institutions earned $55,000 annually in 2016.

Education for a Librarian

All librarians have at least a college degree, and the large majority has a masters degree in library science. Librarians must be highly information technology-savvy, and school librarians must also meet individual state teaching license requirements (including a teaching certificate, which includes both specific coursework and practice teaching hours).

There are other library jobs besides being a librarian. According to MySalary website, the current median salary for a librarian assistant (less education and/or experience) in the United States is $34,877.

User Services Librarians

Typical user service librarians, such as reference, multimedia, children’s or school librarians, work with customers/students to help them find whatever they are looking for. The job entails understanding customer’s needs to determine what information is appropriate, and then helping them to find it. A user services librarian often also plays an instructional role, such as showing patrons how to use library technology or how to evaluate information.

Technical Services Librarians

There is a wide array of librarian jobs. Technical services librarians often work behind the scenes rather than directly interacting with the public. They typically work in acquisitions and cataloguing, and their job is to acquire, prepare and organize materials so patrons can easily locate what they need. Writing abstracts and summaries is one common responsibility, and in recent years some technical librarians have developed computer programming and coding skills.

Administrative Services Librarians

Like their title suggests, administrative services librarians are the administrators of libraries. They supervise the management and planning of libraries, negotiate contracts for services, materials and equipment, have roles in public relations, are responsible for preparing budgets and are usually the supervisory or management personnel in charge of other librarians.

Choosing a Library Science Program

According to the American Library Association (ALA), most professional librarian jobs require applicants have an ALA-accredited master’s degree in library science or in library and information science. Additionally, some states require ALA-accredited degrees for librarians to work in public or school libraries. Having a master’s degree, then, helps librarians become or remain competitive in the job market, offering professionals greater career flexibility.

A master’s degree is known by different names, depending on the program’s focus: Master of Library Science (MLS), Master of Arts, Master of Librarianship, Master of Library and Information Studies (MLIS), and Master of Science. It’s also possible to earn a doctorate in library and information science (Ph.D.), usually for positions in academic libraries or as university faculty.

Guidelines for Choosing a Library Science Program

Prospective students should take into consideration several factors when choosing a degree program in library and information science including bonuses and promotions. Most important in researching schools, individuals should compare a program with their career interests and intended area of specialization, if one has been chosen.

Librarian Jobs and American Library Association Accreditation

ALA’s external review evaluates a program’s structure and curriculum; its faculty and students; administration and financial support; and its resources. More than 50 programs in the United States, Canada, and Puerto Rico are ALA-accredited, many offering traditional, distance-learning, and online degree options.

Admission and Graduation Requirements

Admission requirements generally include an undergraduate degree, letters of reference, and a personal statement or essay of professional intent. Some schools also require a minimum score on the Graduate Record Exam (GRE). Graduation requirements to consider include the minimum number of credits, mandatory classes, time limitations for earning the degree, and may include a thesis or field work.

Library Science Program Focus – Looking Ahead to Library Jobs and Career

With different possible library careers, programs vary considerably in focus. Finding a good fit between a program’s focus and a student’s career goals is essential. Some programs are general and flexible, while others are highly specialized and structured. Some concentrate on training for more traditional library settings, while others prepare students to use information technology in other settings.

Library Science Program – Design of MLS

Prospective applicants should look at a program’s design, paying careful attention to course offerings and course scheduling, both in terms of how frequently a course is scheduled and when. Other important considerations are a program’s specializations, certifications, and career-development opportunities (e.g. internships, assistantships).

Library Science Curriculum – Traditional and Online Classes

Examine the curriculum for structure and flexibility, noting whether a clear progression exists through the program. Also consider whether courses are scheduled at different hours and locations, or with other institutions or degree programs. Many programs offer distance-learning opportunities, and it is possible to earn an online degree in library science.

Library Science Degree – Reputation of Program and School

Outside sources, such as the U.S. News & World Report annual rankings on the best library and information studies schools, are good places to begin research. As the ALA notes, however, prospective any source’s criteria for ranking schools should be examined alongside an individual’s needs and goals. Professional librarians, as well as current students and faculty, are valuable resources for learning about a program’s reputation.

MLS Program Fit for Library Job, Career Goals, and Personal Needs

In addition to choosing a program that matches their career goals, prospective students should choose a school whose environment is a good fit for their needs in terms of faculty, peers, class structure, and institutional atmosphere. Arrange an on-campus visit with admissions or the program chair to tour the institution and meet faculty and current students, who will be able to answer any questions.

Cost of Library Science Degree

The total cost depends on numerous factors. Tuition fees for graduate classes are higher than undergraduate classes, although it takes fewer credits to earn a graduate degree or qualify as a full-time student. Out-of-state tuition costs more than in-state tuition. Other costs include books, living expenses, and travel. Funding, in the forms of scholarships, grants, assistantships and paid internships, are part of a program’s overall cost.

Earning an advanced degree in library science provides individuals with the credentials to pursue a professional career as a librarian. Choosing the best school possible, based on one’s individual needs and goals, is an essential first step. The decision should be taken with care and much research, whether choosing a library science degree in a traditional program or one offering a library science degree online.

Continue Reading
Comments

Education

How To Go Back To School for Free

Published

on

By

Back To School

Are you someone who is considering going back to school? Are you looking at MBA opportunities in the area? If so, you might be wondering how you can save money on education. Fortunately, there are ways for you to go back to school for free. Even though this might be a challenge, you can save a lot of money if you are willing to do some digging. How exactly can you go back to school for free? Why would someone give you this opportunity? Learn more about how you can go back to school free of charge. 

Talk To Your Employer

If you are getting a graduate degree, the first thing you should do is talk to your employer. Sometimes, your employer is willing to provide tuition dollars if the skills you will learn will be relevant to your job. For example, if you are working at a finance company, your employer might be willing to pay for your MBA if you are going to be with that company for several years. If you are a software engineer, your employer might feel like you need to get a degree in electrical engineering as well. They might be willing to pay for you to go back to school if you are willing to come back and work for the company. Talk to your employer and see if he or she would be willing to pay for your education. This is a great way for you to save money.

Consider Your Background 

Next, you need to think about your background. For example, do you come from a minority background? Do you come from a disadvantaged family? If you have had to overcome unique obstacles to earn your degree, there might be a foundation that is willing to pay for it. There are lots of nonprofit organizations that are looking for students to whom they can provide scholarship opportunities. If you are able to find a foundation that targets someone with your background, you might be able to apply for a scholarship opportunity from the foundation. That way, you do not have to pay to go back to school. 

Think About Military Service

Finally, you should also think about military service. If you want the military to pay for your education, they might be willing to provide tuition dollars in exchange for military service. Usually, there is a one-to-one trade-off. This means that if you are willing to serve in the military for one year, they will provide one year of tuition payment. This does not necessarily mean you have to go and service on the front lines. For example, if you are going to get a degree in accounting, the military may hire you to be an accountant for a certain number of years. Military service is another way for you to save money on your education. You will have to pay with time instead of money. 

Go Back To School for Free

Ultimately, there are plenty of ways you can go back to school for free. It is important for you to think about all the opportunities available if you are looking for ways to save money. It is true that you can take out a loan to go back to school; however, it can be inordinately expensive and it made create an anchor around your ankles that you are going to carry with you for several decades. Therefore, do not automatically assume you are going to have to take out a loan to go back to school. There are other ways you can pay for school as well.

Continue Reading

Education

Tips for an excellent essay

Published

on

essay

In modern higher education, the essay form has become widespread, so many students face this issue – and how to write it? Essays came to us from the Anglo-Saxon educational tradition, where it is one of the basic elements of learning (especially in the first years). In universities of the United States and the United Kingdom, there are volumetric courses that study the principles of creation and types of essays that can makу you almost an essay writer, we also have only a few faculties to afford at least a short semester academic letter. Because of this, not yet eliminated imbalance, we offer you your analysis of the question of writing an essay.

Free form of writing

Answer the question “How to write an essay?” Simply simple – “As you want, write and write.” This is not a joke and not a failure to answer. Essay is the maximum free form of prosaic composition of a small volume. The only substantial restrictions for all types of essay are except for a small volume, the presence of copyright opinion and a more or less defined occasion or a topic for text.

But a similar answer is “once a free form, then write as you want / know how to satisfy someone, including because” anything “is usually somewhere near” what “.” In addition, many are in captivity of the stereotype that if essay, it is necessarily a suitable and complex thinking, to which only philosophers are capable of (this is not).

And here I would share writing an essay (generally) and writing a quality readable essay. Oddly enough, but in the first case you have enough to get acquainted with one example and then pull the courage to give your text. According to many writing, you just need to start to express thoughts and new ones will appear by themselves. To start in any way, for example, from the words “Well, in short …” or “the whole thing is that …” or even with a swag, if your mind is so arranged. After the text was born – some of the proofreading and in print, in the sense – to pass.

As for the high-quality essay, there is a little different situation with him. It’s one thing to remember how you wrote essays at school and to give something like this, quite another – take responsibility for how the text will interact with your audience. There is nothing easier than to write an interesting essay if you have already learned to write texts that take clever. Accordingly, there is nothing harder than to make such an essay if you have not even started learning.

Catch the reader’s attention

In any case, it is worth remembering that the beginning of the text determines a lot. For this reason, the introductory part of the essay must contain something that will allow the reader not to fall asleep and not throw your text in the middle. For this, there are several techniques that could be kind “essay help” for you, select the two most obvious.

The first strategy is to choose an interesting topic and it is extremely clearly voiced at the beginning of the essay. Think about your audience (for example, a university teacher) and avoid banal themes, unless you intend to hit the reader with a super-constitutional interpretation of something familiar. It is important to remember that each topic has not only potential and content that make it relevant to a specific reader, but also – feed.

A huge number of unsuccessful essays begin with an ineptly filling theme that could be interesting. If you have at least some consideration about how your approach to the topic is different from others – this must be mentioned at the beginning. Therefore, remember: the topic itself does not take out, it is important to be clearly and interestingly formulated at the beginning of the text. Otherwise, you risk: even being forced to read your verse teacher – first of all, the reader who usually unconsciously creates an impression of the text on the first paragraphs.

The second approach capable of holding the reader’s attention is anticipation. Often it requires more skill, although some is given without problems. This approach to the essay could be called the principle of “snowy coma” or “chain” – or each previous proposal makes you read the following, or everything disintegrates.

In most cases, there are two tools – intrigue and style. You either subtly hint at something, or fond of the beauty of the syllable, from which the reader wants and continues to read. Therefore, it is often recommended to start an essay from a question (intrigue) or a bright phrase (style). The free style and composition in the essay is invented so that the text possesses some highlights

Even if you feel the lack of some of your own interesting thoughts, the essay can be high-quality – if the author is visible, his look, language, rhythm of text, search for arguments. As in any text (especially small), the author should be remembered about alternating short phrases and long, as well as avoid complex terms, common phrases, and unsconsiders.

Replica of thinking individual

When you decide on the beginning, you can also think about the main content. Essays should be distinguished from a scientific article, literary essay, event notes and philosophical thesis. Essay does not claim an exhaustive view on the topic, and also does not need the rigor of definitions or reference to the facts. As a small form of essay is closest to a small monologue, pronounced in mind or in the usual company. That is why the essay is rather an attempt to strudust the thought than the finished sequence or scheme.

Actually, the French word Essai means a sample, an attempt. Hence the orientation to the spoken intonation, imagery, frankness, sometimes the limited compression of thought (without excessive explanation). A good tone for an intelligent person since the XVI-XVII century (when this form appears) is also considered to oppose oneself to themselves, so in the essay often use the imitation of the dialogue with the reader or thinking by antithesis.

Ultimately, it is worth remembering that the essay is a cross between a story about himself and strict philosophical reasoning. This is a replica of the thinking individual. Esseist – not confess, but not hiding himself. At the same time, he is philosophized, but philosophized without strict obligations of the form.

One of the bright examples of such a combination can be a critical summary: criticizing the event, work, author, we equally inform you about yourself (your tastes, values, beliefs, level of understanding), and about the subject of criticism. In other words, an essay as such does not assume that you really inform something new, but it seeks originality – first of all in the ability to strudust experience and knowledge in its ability.

And here it is worth noting that the essays that are written in universities are usually much easier, since they are focused mainly on the demonstration of independent reasoning skills. Many nuances of an essay should be known only if you expect a slightly wider audience than one university teacher. In most cases, the teacher who tasks the essay wants to make sure of two things.

First, do you know how to talk thoughts? Are there any thoughts of thought, losses of causal relationships, unreasonable and non-obvious judgments?

Secondly, are you capable of dialogue and minimal self-criticism? The latter assumes that the author does not only feel the need for arguments supporting his position, but maybe they may come up with.

Or even easier: the essay should be intelligible (clarity of the theme and content) and not unfounded (understanding of the essence, expressed in the presence of adequate arguments).

Continue Reading

Education

How to learn to generate ideas for writing an essay?

Published

on

essay

IELTS and TOEFL tests check not only the knowledge of the language, but also your logic, the level of critical thinking, the ability to generalize, argue, and express the point of view.

Generation of ideas, planning and writing Essay are important skills that need to be specifically trained.

Colleagues help students from different countries and cities to prepare for the surcharge of IELTS and TOEFL according to Skype. Often they are treated with such problems and complaints:

  • “Themes are very complicated, I have no ideas”
  • “I don’t know what to write about and in what order”
  • “I can not express the thought”
  • “ Can I pay for essay?”

I know this feeling: a blank sheet, many times reading the task and absolutely nothing goes to mind.

But I am also sure that with planned, regular training you can write an essay on any topic.

Before giving recommendations, I want to comment on the most typical complaints related to writing works.

1. “This is a difficult topic”

All examination themes are adequate to reality. These are the questions with which we face in everyday life, and the arguments “I don’t think about it”, “this topic does not concern me,” “this complex topic” is not accepted.

Education and work, food and health, family and relationships between people, parenting, ecology and environmental protection, crime, purchases and advertising, technology and Internet, transport and travel …

Do not these topics relate to you? We are discussing them, reading about them, and arguing about them every day!

Another thing is that you do not think about how to clearly express your thoughts, do not lay out your considerations on points and not analyze the causes, consequences, advantages and disadvantages. This is to learn.

2. “I don’t know what to write my essay about and in what order”

As I mentioned above, the generation of ideas is just a skill business. Essay has a clear, organized structure and your task is to understand this structure and insert your thoughts into it. Thoughts each time are different corresponding to the topic essay, and the principle is the same.

3. “I don’t know how to express thoughts”

If there are thoughts – it is already good.

Lexik and grammar – this is the second question.

I know that many are scared that their ideas will be too wise, and not enough words to express them in writing. Therefore, these students try to simplify their thoughts, sift really standing (but more complicated) thoughts and as a result do not know what to write about.

Understand what your problem is: in the absence of ideas or in the absence of resources for their description. The second problem is much easier to solve. Even if your level is high, but you do not know what to write – you will not have a high-quality essay.

Therefore, first learn to generate ideas (you can first in your native language), and then look for ways to express them in English.

So what to do if you do not know what to write about if you find it difficult to find ideas for writing an essay? Several tips to help you:

  • Think (differently)

I have no doubt about your mental abilities and what you think regularly. But to write a cool essay, you need to think a little differently, training critical thinking, analyzing the situation and considering it from different sides.

I am sure that you will probably have a formed opinion on many questions and the fact that it remains to learn how to analyze your own opinion.

Start with simple exercises:

Each time you agree with someone or disagree, allocate three (or more) reasons why you support or do not support this opinion.

When you voicate your point of view, allocate several arguments, why others must agree with it.

Think about the problems and paths of their solution, find the advantages and disadvantages of phenomena and items that surround you.

Your task is not only to voice the opinion and your position, but also learn how to argue and justify it.

The same thing is with an essay. After reading the task, you always answer questions:

Do you AGREE OR DISAGREE?

To What Extent Do You Agree?

Do the Advantages Outweigh The Disadvantages?

What Are the Reasons?

And as soon as you have formed an opinion, answer the question immediately: “Why do I think so?” And write down your ideas, arguments and examples.

  •  Discuss

If no new and fresh ideas appear in your long-suffering head – discuss topics with other people. The side view is always useful.

If you are preparing in the group, then your teacher must initiate discussions when preparing for the essay, where you can exchange views with one-laugures. And in individual classes, the task of the teacher is to discuss the task with you, to help with the choice of arguments, structure.

But when independent preparation is harder to find interested interlocutors.

Discuss the themes of the essay with friends, parents, and close. Ask them to express Opinion, highlight Advantages and Disadvantages, and offer Solutions. To understand you correctly, explain that you are preparing for the exam, and ask you to take time. I think no one will refuse. Discussion is not necessary in English.

Remember, write down all thoughts and after choosing the most successful you use in your essay. Already in English, of course.

  • Read and analyze

You do not learn to write an exam essay if you read the original Shakespeare. Reading posts about the life of the popular instagram blogger will not teach you to cope with the Writing Part. To learn how to write an essay, you need to read – Guess what? – Qualitative examples of essays!

Read and disassemble Model Answers.

If you are engaged with a teacher, he will pick up suitable materials and show you how to analyze them. If you are single – the Internet can help you. On sites there are a lot of writings.

What to do with them? It is important for you to learn how to allocate the main ideas of the author and its arguments, that is, to do reverse action – from the finished essay to the plan, from the plan to the main ideas.

Is it worth memorizing and memorizing other people’s ideas?

I do not think it is effective. You never know what the topic will come to you, so memorizing is not the most reliable option. You need to learn how to generate your ideas, formulate your point of view. Focus on developing this skill in yourself.

The preparation time for that and it is necessary to revise the maximum number of topics that the exam suggests, analyze them. If you do not have time to write an essay in all tasks that you analyze, do you bother to make plans and think about ideas and arguments.

  • Visualize

Most of us are visuals, we perceive the information visually. When we see with our own eyes, clearly, we better remember the data.

If the topic seems abstract or distant from reality, try to imagine this situation: real people who face a problem, put themselves in this situation.

Imagine how people who come to universities like cars pollute the air as large budgets are invested in a study of space, as the jury is sentenced, as children play games on mobile phones …

When you associate yourself with the situation, it is much easier for you to analyze it. Include imagination, do not be afraid to generate any ideas, and then choose from them the most relevant for your task.

5. Write!

If you do not know how to play a violin, you will not learn to play if you look at her, think about her and talk about her. In order to play, you need to play: Practice hours, errors, corrections, and again practice.

Similarly, with an essay: you do not learn to write work if you read, think, visualize and talk about it.

Continue Reading

Education

Tips for graduates: How to spend your last days in college and what to do next

Published

on

By

Studying is coming to an end, so what will happen next

If you are a good student and do not have any tails, debts, and the diploma is being written at the beginning of the final year, then the last six months of your studies will pass easily and without any problems. The hardest part is over and you only have to prepare yourself for the defense: to make changes in your work, coordinate them with the supervisor and prepare yourself morally.

And so that so much free time is not lost in vain, it might be worthwhile to spend it usefully? Prepare, so to speak, for the summer.

To prepare for graduation should be engaged in the third-year students. By this time there is a clear idea of what you want to take from life, and how to live further, whether to continue studying in the U.S. or go to Europe, or maybe immediately find a job. In our article, we will give some tips about how to spend your last days as a student.

Be prepared beforehand, it’s important.

If you decide to go to a foreign educational institution and continue your studies there, you need to collect a large pile of documents, solve the housing and language issues, at least at the time of admission.

But it is better to start preparing for such a responsible step in advance.

Firstly, having a specific goal for the student will give him a charge of motivation that will help him improve his grades.

Secondly, having prepared in advance, there will be a clear timeline of when and where to go, focusing on the experience of previous years, and this, in turn, will help better plan their strengths and time.

And third, applying early increases your chances of getting on the admissions list.

And, if you decide to enroll ahead of time, you can better work through the important documents required for admission, such as the CV cover letter, one of the most important aspects of admission.

And if you don’t want to study, but you want to work and make money, it never hurts to do market research beforehand, along with employee reviews.

How do I start preparing?

The first thing you need to do is to decide on an educational institution. Do not know where to start, use the world rankings of the best universities in the world. Do not grab everything in a row, define your area of interest and understand if you meet the criteria for admission.

But what if you just need a little bit more? Especially for you, we have collected five tips to help you with your future admission to a foreign university.

Tip #1: The high value of internships

Professional experience is incredibly valuable at foreign universities. Even if it is not long, it will impress the admissions committee. If you can also explain the skills you acquired during your internship, that is a big plus in front of your name.

Do not worry if the internship was in a small and fairly local firm that no one outside the city knows about. A little writing talent and imagination, and here in your motivational (cover) letter-CV- you appear as an employee of an indispensable small company in your city.

Grintern is ideal for students with minimal work experience. What makes this agency different is that it is not just looking for a formal internship, as some people do, but it offers a full-time job that will give the applicant unique experience and the practical skills needed in the future. It’s easy to find internships in media, fashion, PR, IT, languages, and much more.

AIESEC – this service is aimed at finding internships mainly in marketing, sales, IT, engineering, business, languages. On the plus side, you can also look for campuses and volunteer activities at this organization.

graduate is a service that helps students and graduates with both internships and finding full-time jobs. And for adding new skills, you can find specially prepared educational programs directly from employers here.

Future Today is a service for finding internships and permanent jobs in completely different fields: from medicine and IT to banking. It doesn’t stand out in any way, but it’s at the highest level.

GALIMA HR is one of the best companies for finding jobs and internships in the creative industries.

Tip #2: Take more courses

There are many courses and not just online, to upgrade your skills or get an additional diploma, all from the comfort of your home.

Do not think that this is an unnecessary waste of time. In the 21st century, there is a global trend towards free education, and in the best universities, not only in Russia but in the rest of the world.

You will receive not unique knowledge and experience, but also an important certificate, which will show your desire for new things and an extraordinary level of knowledge.

Tip #3: Raise your GPA

No matter what anyone says, your grade point average is the most important factor when applying to any foreign university.

If you prepare early for admission, you may begin to have problems with your studies due to a lack of time. Such sacrifices are necessary for a successful future. And so that your grade point average does not decrease, but rather grows by leaps and bounds, buy term paper, for example. It is better to pay a couple of times for high-quality student work, but then continue studying at a foreign university!

Tip #4: Don’t Forget Extracurricular Activities

Many foreign institutions pay attention not only to academic qualities but also to the activity of the student outside the university. If you want to improve your place in the admissions committee rankings, choose one of these options:

  • volunteering and charity work;
  • Taking part in unofficial projects (film shoots, fashion shows, etc.);
  • Scientific conferences, conventions, symposiums;
  • sporting events;

Tip #5: Prepare for language tests

Start early. If you think that you can quickly learn the same English language, you are very mistaken. Do not forget about practice, it is incredibly important in learning any foreign language. You can master it perfectly in theory and write correctly, but speaking it is quite another thing.

Continue Reading

Education

Private Equity vs. Venture Capital: Which One Is Right for You?

Published

on

By

Private Equity vs. Venture Capital

Are you a successful entrepreneur who is considering investing in other companies? Perhaps you’re interested in working at an investment firm. Maybe you own a business that needs investors. Regardless of where you sit at the table of business and finances, it is important to understand the difference of private equity vs venture capital.

Defining Private Equity

Private equity is interest in or ownership of an entity with no public trade list. This type of investment capital is common among individuals with a high net worth and among firms who plan to purchase private or public companies with the plan to privatize them and remove them from the stock exchange. Typically, you must have at least $250,000 as a minimum capital investment to work with a private equity firm; however, many have higher minimums.

Defining Venture Capital

Venture capital is available to startup companies that have a strong potential for long-term growth. Like private equity, venture capital is available from wealthy investors or financial institutions that take an interest in investments. Venture capital isn’t always monetary, though. Sometimes, investors provide the capital in the form of management or technical expertise. Venture capital is becoming increasingly popular for businesses that are less than two years old.

Risk vs. Reward for Private Equity

Those who invest in private equity have a very low risk since they invest in mature companies that already have an established reputation and revenue. In fact, the chance of a private equity investment failing is nearly 0%. In 2020, private equity created an average annual return on investment of just over 10%. That means someone who invested a minimum of $250,000 could have made$25,000.

Risk vs. Reward for Venture Capital

Because they are more likely to work with new businesses, venture capitalists run a higher risk when investing. Additionally, investors who put their money into a new business aren’t likely to see a return on their investment right away. Those who do invest in venture capital typically put more than 80% of their money into the company’s innovation life cycle, meaning the money goes into growing the business. Examples include marketing, sales, and manufacturing. The idea of venture capital is to grow the business until it is large enough to become part of the public equity market.  If the company never becomes successful enough, investors will not see a return on their investments. 

Private Equity vs. Venture Capital Firms: The Interview Process

Investors want to know where their money is going, which means undergoing an interview process. While both types of investments focus on the business background and experience, the similarities between the interviews stop there.

A private equity interview is a long and often hard process. The interview may include a modeling test or perform an entire case study of the company. These are tests to determine how well a business owner will do at the financial modeling and analytical work if the firm decides to invest.

Because venture capitalists know they are investing in up-and-coming businesses, the interviews tend to be less stringent. They focus more on quality and what the best vent will be for a business. The smaller size of the businesses means detailed financial models often aren’t available yet, so venture capital investors focus more on the business relationship. 

Private Equity: The People and Work Involved

Private equity firms and venture capital firms both rely on experts in the finance industry, but the types of experts tend to vary some. Because private equity firms focus on large, established corporations most of the time, they tend to recruit investment banking analysts for their teams. Financial consultants and others with financial backgrounds can enter the private equity world, but doing so will be much more difficult.

In a PE firm, the work is much like investment banking. Investors spend a lot of time analyzing their investments, reading financial statements, and predicting outcomes. They also need to coordinate with other PE firms, bankers, accountants, and lawyers if working on a deal, though, something that isn’t as common in investment banking.

Venture Capital: The People and Work Involved

Venture capital firms are easier to begin working with. Venture capitalists often include people adept at business development as well as ex-bankers, former financial consultants, and even people who were once entrepreneurs themselves.

People who work as venture capitalists focus more on relationships over the financial aspects. Working in venture capital requires financial knowledge but also relies strongly on communication skills and the ability to sustain interpersonal relationships

Exit Opportunities for Private Equity vs. Venture Capital

When the time comes to invest earnings elsewhere, private equity exit strategies are numerous. Many investors choose to move on to hedge funds, which have a more rapid return on investment. Some decide they would prefer to switch to venture capitalism and help other businesses grow. Other exit strategies for private equity investors include working at a portfolio company, launching their own funds, or starting their own businesses.

Venture capitalists typically use one of four exit strategies. Most commonly, they begin an initial public offering. An IPO is what occurs when a company is first listed in the stock exchange markets. Other venture capitalists choose to use mergers and acquisitions methods, and some sell to other investors. Shares buyback, which involves re-purchasing a company’s outstanding shares, is also common. 

Knowing which one to choose depends on what you hope to gain from your experience. If you are a “people person” who doesn’t mind taking a risk, make your way into venture capitalism and potentially help the next startup business make it big. However, if you prefer to stay behind the scenes and have the financial means to do so, private equity is a better bet. Regardless of your choice, work with a professional and experienced firm.

Continue Reading

Trending