Start up dream - when to exit banking?

Based on the most helpful WSO content, here are some insights for those considering exiting banking to pursue a startup:

1. Timing Your Exit from Banking: The best time to exit depends on your personal career goals and financial stability. If you're planning to work in Private Equity (PE) before founding a startup, gaining experience in PE can indeed be beneficial. PE experience will provide you with a solid understanding of business evaluation, growth strategies, and financial structuring, which are crucial for running a successful startup.

2. Networking and Fundraising: Working in PE could definitely help with networking for fundraising. PE professionals typically build extensive networks that include investors, other entrepreneurs, and professionals in various industries. These connections can be invaluable when you start looking for funding for your own venture.

3. If Things Don't Work Out: If your startup venture does not succeed, having an MBA could be beneficial but is not always necessary to secure a high-paying job. Your experience in IB and PE, combined with the entrepreneurial experience, would already make you a strong candidate for many high-level positions in finance or corporate roles. However, an MBA could provide additional networking opportunities, a chance to refine your management skills, and potentially facilitate a career pivot if needed.

4. Alternative Options: Should you decide not to pursue an MBA or if the startup does not work out, you could consider roles such as:

   • Returning to investment banking or PE with a richer resume.
   • Moving into venture capital, which could be a natural fit given your startup and PE background.
   • Corporate roles in strategy or business development, where your skills in deal-making and strategic planning would be highly valued.

5. Long-Term Considerations: Always consider the long-term impact of your career decisions. While the startup world offers high rewards, it also comes with high risks. Ensure you have a financial buffer and a clear plan for what you might do if the startup does not go as planned.

In summary, transitioning from IB to PE and then to founding a startup can be a strategic path, leveraging each experience to build towards your entrepreneurial goals. Networking in PE will be crucial for your startup phase, and while an MBA is not strictly necessary, it could provide a safety net and further career enhancement if needed.

Sources: https://www.wallstreetoasis.com/forum/venture-capital/founding-a-startup-exit-opps-if-things-go-under?customgpt=1, Why You Should Launch a Startup Instead of Going to the Buyside, Why You Should Reject that Start-Up Job, Want to build a startup & raise some money? Part I