Recruiter's Glossary

Examples: MOIC • TAM • Hurdle Rate

ROI

Term from Venture Capital industry explained for recruiters

ROI (Return on Investment) is a key measure used in venture capital and investment roles to show how successful an investment has been. It's like a report card that shows how much money was made compared to how much was invested. For example, if someone invested $100 and got back $150, the ROI would be 50%. People working in venture capital frequently talk about ROI when evaluating startup investments, making investment decisions, or reporting to stakeholders. Similar terms include "returns," "investment performance," or "investment yields."

Examples in Resumes

Achieved 300% ROI on early-stage tech startup investments

Led investment strategy resulting in average ROI of 45% across portfolio

Developed analysis framework to predict potential ROI for seed investments

Presented quarterly Return on Investment reports to board members

Typical job title: "Investment Analysts"

Also try searching for:

Investment Associate Venture Capital Analyst Investment Manager Portfolio Manager Investment Professional Investment Director Fund Manager

Where to Find Investment Analysts

Online Communities

Professional Networks

Industry Events

• SuperReturn Events
• VC Meetups

Example Interview Questions

Senior Level Questions

Q: How do you evaluate potential ROI when looking at early-stage startups with limited financial history?

Expected Answer: Should discuss methods like market size analysis, comparable company analysis, growth potential assessment, and risk factors. Should mention both quantitative and qualitative factors in ROI prediction.

Q: How do you explain ROI expectations to limited partners?

Expected Answer: Should demonstrate ability to communicate complex ROI calculations in simple terms, explain risk factors, and show understanding of different investment stages and their typical return profiles.

Mid Level Questions

Q: What factors do you consider when calculating ROI for a potential investment?

Expected Answer: Should mention initial investment amount, projected returns, timeframe, market conditions, risk factors, and exit possibilities.

Q: How do you track and report ROI across a portfolio of investments?

Expected Answer: Should discuss tracking methods, reporting tools, performance metrics, and how to present this information to stakeholders.

Junior Level Questions

Q: What is ROI and how do you calculate it?

Expected Answer: Should be able to explain that ROI is (Return - Investment)/Investment x 100, and give simple examples of calculations.

Q: What's the difference between realized and unrealized ROI?

Expected Answer: Should explain that realized ROI is from completed investments (actual cash returns), while unrealized ROI is projected returns from current investments.