TLDR:
- Private equity-backed fintechs pay better than VC-backed fintechs
- VC-backed fintech staff are happier than private equity-backed fintech staff
A recent paper from Oxford and HEC Liège researchers analyzed one million employee reviews for startups on Glassdoor, showing that VC-backed firms excel in employee satisfaction, while private equity-backed startups have higher pay. The study found that employees in private companies tend to be much happier than those in publicly traded companies. VC-backed companies offer a supportive culture, growth opportunities, and proactive HR policies, leading to higher employee satisfaction. However, employees in VC-backed companies often face demanding workloads and impaired work-life balance. On the other hand, private equity-backed firms provide better compensation but fall short in areas like promotion opportunities, training, hiring processes, and employee care.
Overall, the study highlights the trade-offs between working for private equity-backed and VC-backed fintechs, with each offering unique advantages and disadvantages for employees.
