[wakeupthedawn]

People do become analysts for the pay (in addition to the exit opportunities). Despite the per-hour rates, there's definitely something alluring about the idea of making more (even if only marginally so) than your peers right out of college. Starting pay at VC's for analysts coming from banking is low relative to other options (especially private equity, which is generally the top choice). The bankers who come to VC either aren't good enough for better options or are genuinely interested in being involved with innovation, or at least the illusion of it.