How important is networking really?
Wanted to get some thoughts on just how important networking really is. On this forum especially, people always say network network network, and how that is the key to everything. I go to a semi-target school, and have never purposely networked a day in my life.
All I do is send out online internship applications, and I had many many interviews this year for IB and other Industries including 3 super days for MM banks. I ended up accepting an internship role in Corp dev at a tech company where the team is all former bankers with top MBA’s. I also turned down many phone screens for other Ib opportunities across the spectrum of banks after accepting my Corp dev offer.
This post isn’t to try to come off as bragging or anything, but there is nothing that exceptional about me, yet I was able to secure many interview spots while not networking whatsoever. Is networking really extremely important after all? What am I missing?
.
Non-target kids definitely have a better mindset than a lot of kids that might feel entitled to things because they went to a target. I came into IB thinking that everything was going to be spoonfed to me from the beginning but I quickly realized I couldn't think like that. The non-target kids in my class never thought this for a second and were much more inclined to figure things out on their own and leverage resources like Google, previous company files, etc. to succeed. They had it ingrained in them to do things like that while others in the class had to be taught to do that.
So let me get this this straight.
You applied for IB, including presumably the top banks.
You landed interviews in MM.
You landed a job in Corp Dev.
But you don’t see that it could’ve gone any better, so you don’t see value in networking.
Let’s use a capital markets example to understand why suggesting and/or recommending networking isn’t wrong, will never hurt you, and could potentially screw you if you decide not to.
Issuer A is a relatively unknown company with limited past offerings and potential operational question marks. Issuer A is coming to market with a new debt offering. Market is flowing, funds are fat with cash, and “every” deal seems to fill the books and price without a hitch. Issuer A decides to skip and/or becomes lax on certain pre-marketing (networking) steps (i.e. in-person roadshows, early release disclosures, 1x1 investor calls etc.). What does it matter? It will all be good, my friends Issuer B, C, & D, say don’t waste your time and money on that time consuming marketing stuff!
Now... You are all set to price, spent months prepping, need the cash, and are expecting an easy road to the finish line. Fingers crossed my week goes well and doesn’t cost me bp or two! All of a sudden a global pandemic (no way, that could never happen) comes along and puts the market on its head. Spreads blow out. Investors spooked. On the day of pricing you only need a few more investors to show up and push it across the finish line, but you can’t get anyone to come in. The flakey ones dropped out, the last min. types don’t know who you are, and the over worked guys didn’t have access to you half assed disclosures.
What if I had just done XYZ more... That $$ would have got us through to the other side of this thing.
Glad you got what you got the gig you wanted OP, but don’t spread your false sense of security to those who want to hustle and may not have the ability and/or security to fail. I would wager a lot of money that those college students who have created solid networks, followed the suggestions of countless peers about networking, and hustled (with minimal required actual effort) will fair better than those who chose not to.
The going was good for a while, but it is about to become a bumpy ride for the next few cycles of recruiting. I wouldn’t have minded having a few networking contacts in my back pocket for when it counts.