Venture vs. Instagram?

Mar 9 25 Comments

Partner at Venture Firm with $200mm assets
TC: $360k plus 6% carried interest

-or-

Instagram Sr. PM
TC: $450k

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TOP 25 Comments
  • Amazon Cynimist
    Nowhere near enough info to answer this. Small VC firms are a crapshoot. 200M is not tiny, but not big either. Who are the other partners? What will you learn from them and what do they bring to the table? What do you bring to the table? You are building a business with them, while building a new career as a VC. Very different path then PM where you are working toward a Director Product or Group PM role in big tech - probably a mil TC in 3-5 years if you are rocking it. VC path could be way better if you have some big hits and grow the firm or hop to a tier 1 VC after proving your value - but this is harder to pull off than progressing in a product career and needs a lot of luck combined with skill and major risk taking. Also think how your resume looks in the median outcome case 3-5 years from now in each of these paths. Good luck.
    Mar 9 0
  • How/When does the 6% carried interest come to fruition ?
    Also curious how you got to Partner at VC firm ? Ex entrepreneur/ MBA ?
    Mar 9 6
    • Interesting, how did you get this role ?
      Mar 9
    • OP
      The milllion doesn’t get paid out in 1 year. It sorta just gets broken up over time
      Mar 9
    • OP
      Partner at Vc fund is really hard to get. There’s no application process and you have to just sort get asked or hang around.
      Mar 9
    • Oscar 🐨koala
      Interestingly i was asked about it when i was only a junior. The lady was fun to talk to lol
      Mar 9
    • Apple zrqv72
      Just check that math out. Usually the carry is on your deals only unless you’re super senior. Also are you joining after fund formation? Meaning how much has been invested and how much is dry powder? Also 7 years is actually pretty short life for a fund - most structures are 5 years of investing and 5 years of payouts. So 10. Of course every fund is different. Just ask for the language on fund life.
      Mar 10
  • Facebook PcXU20
    Instagram is probably the best place in the world to work as product at. I’m an iOS engineer at IG and I love the product direction as well as the company culture. Don’t think there is a better company in the world to work at atm, and I’ve been to quite a few
    Mar 9 0
  • Uber kettle
    Unless this is a brand name VC (and with 100mm AUM it is likely not) they are not going to return even 2x. Have you looked at their historical returns? You should be realistic. You will earn far more building a PM career. All depends on stage and goals of course
    Mar 9 1
    • OP
      It’s a specialized fund that invests in only one area. On their 3rd fund so relatively steady.
      Mar 9
  • Facebook PcXU20
    That’s fair. A good amount of the role of product engineer does bleed into the PM role, so you’ll likely have some help from eng as far as timelines and deliverables go, as well as meeting scheduling if you have good tech leads. Your job will be more roadmapping and creating the direction for the product space. Which on a platform like IG, being able to direct shape experiences used by hundreds of millions is pretty cool.
    Mar 9 0
  • Capital One EXwk33
    VC is only easier than PM if you are bad at it. Doing sufficient due diligence is a ton or work and travel
    Mar 9 0
  • Postmates dancingkng
    Instagram. VC fund horizon is long, so you’re banking on a good M&A/public market 7-10 years from now to realize a good carry. Venture is certainly easier than a PM, but it’s harder to be great at it
    Mar 9 0
  • Credit Karma iymM44
    Don’t look at this from a monetary perspective. You have to ask yourself if you really want to be a VC, and if the answer isn’t a resounding YES then you could find yourself miserable as it’s a decade long commitment. Jason Lemkin did a nice post on this recently
    Mar 9 0
  • Capital One EXwk33
    What field is VC in. Personally most valuations I'm seeing particularly in tech look like a bubble, so I wouldn't bet on huge upside
    Mar 9 1
  • OP
    The carry is uncertain but worth about $1mm in 7 years if everything goes well
    Mar 9 1
    • Uber kettle
      So 142k/year ? 500k TC is not enough for lack of liquidity. In 7 years you'll be making more than that most likely
      Mar 9
  • OP
    My concern is that as a PM, so much of the job is project management and that’s something that sucks energy from me after a while.

    Can’t see myself doing it for more than a few years.

    VC will stay interesting longer because it appeals to my A DD.
    Mar 9 0
  • OP
    Isn’t lifestyle of PM really tough tho?
    Mar 9 0
  • Capital One EXwk33
    I suspect VC will be more work and travel, but you will learn more.

    Given that the choice depends on your priorities
    Mar 9 0
  • Reddit now @ IG
    Don’t leave Instagram :(
    Mar 9 0
  • Lol what, those are completely different roles unless you’re giving PM help to portfolio companies.

    If you’re motivated towards Instagram, stay in VC. Every aspect of VC is blatantly money driven, Instagram is more likely to be product driven. And VC, over time should yield more. Even right now, carried interest of 6% has to be more than a few hundred thousand, no?
    Mar 9 0
  • Nielsen / Eng
    TrilGates

    Nielsen Eng

    PRE
    Google
    TrilGatesmore
    Instagram
    Mar 9 0