Getting Started with Finance and Venture Capital

As a physician or life sciences Ph.D. graduate, you may understand completely the nature and value of good research but also be prepared to move onto a more cerebral realm. Financial organizations and those dealing in venture capital are always in need of trained scientists to help them sort through which investment opportunities in biotech, pharma, and other technical realms represent the best chance for high returns. These are well-paid positions for those in the sciences who are comfortable with financial numbers and statistics.

If you are interested in this kind of work, you must be a forward thinker, trustworthy, a risk taker, and one who is willing to make high-impact decisions for your firm. Money for thousands of people could be made or lost on the decisions you make regarding the scientific investments you review. In return, you will become intimately knowledgeable about many companies and be one of the first to learn about new technologies, pharmaceuticals, and devices.

In the area of Finance, you would work for one of the major investment banks in the United States. Many of these have their own research departments and hire scientists in many specialty areas. You would carry the title of “Research Analyst” or “Market Analyst” and work your way through different levels of hierarchy, depending on your skill level.

Alternatively, you may work for any one of the many mutual fund organizations that also need researchers to evaluate the credibility of the scientific, medical, and technical corporations in whom they invest. Some of the major investment banks include JP Morgan Chase.  They have online opportunities in research positions throughout the world. They say they are looking for PhDs who are entrepreneurial with strong analytical, quantitative and communication skills.

Goldman Sachs is another multinational organization of this type. This corporation offers online applications for worldwide positions. They have a huge company and, as a result, have designed a quiz that you can take to see where you may best fit into their organization based on your background and on the way you prefer to work.

Morgan Stanley is a company that offers global positions. For postgraduates, they offer a Research Associate position that has a training period of 4-6 weeks and a mentorship for those who would like to begin right out of college. As with the other investment banks, there is a great deal of teamwork involved.

Citigroup, Inc. has fewer jobs out here but these can be directly searched on their site. They have a special division for research.

Piper Sandler is a large investment bank that routinely offers positions beginning with titles such as research associate for those with Bachelor’s degrees and Research Analyst positions for those with advanced degrees. Most but not all of their analysts have an MBA. There are many other large investment banks from which to choose.

Corporations like Fidelity, Inc., T. Rowe Price, Vanguard, and Schwab are involved with mutual funds but still require research personnel, although the volume of choices in these organizations is lower. Rather than searching through every possible mutual fund organization, try looking at those posted on www.biocareercenter.com.

Venture Capital Firms are privately owned. They solicit funds and invest in promising new technology and intellectual property.

As with investment banks, they need high-quality researchers to evaluate the various ideas presented to them for their scientific and marketing feasibility. These firms choose the best investments to commercialize and profit from. You, as the researcher, must be entrepreneurial in nature, capable of taking risks, and understand the basic science behind an idea or product.

Fortunately, as you start out, there are several employment rungs above you who will make the final decisions. One website listed 67 venture capital firms that only invest in the biological and medical sciences. Of these, there were several that have over $750 million dollars in assets under management or $750 million worth of capital. These include De Novo Ventures and Bain Capital. These are healthcare investment firms that have founded or co-founded numerous corporations and invested in many more. Founded in 2000, De Novo Ventures focuses on healthcare and medical products.

Another company is Domain Associates. Founded in 1985, this firm focuses exclusively on pharmaceuticals, specialty pharmaceuticals, and medical devices. The team there has collectively begun over 160 companies.

MPM Capital is a firm that claims to be one of the world’s largest venture capital investors in the life sciences with active capital of over $2.1 billion. Its focus is on biotechnology, medical devices, and pharmaceuticals.

Between investment banking and venture capital firms, the latter is the hardest in which to find a career. The firms are small and the income potential is high. Networking is far more effective than looking for job postings because there are many small firms of this type. This means that your networking will be the most effective tool to have in finding firms with open positions.

Also, these firms tend to look for the resumes of the people they want, so be sure that you have an updated resume on the Bio Career Center Jobs Board and that you have noted your interest in Venture Capital. A career in Finance and Venture Capital can be exciting, varied, remunerative, and team-oriented. They are also labeled deadline-oriented, pressured, and demanding. For those who are comfortable with their statistics, mathematics, and strategic skills, and who are ready to step away from the bench, this is a promising career path.