Deep tech entrepreneurship vs pursuing career in high finance

Short overview:

IB/PE/VC/HF

Investment banking is a common pathway for college graduate for breaking into private markets

Primary work is advisory (due diligence), modeling and managing M&A, IPO and other deals

In nutshell, they bridge the gap between capital markets and capital providers (acting as the middleman)

They help firms buy each other & originating boatloads of new securities (equity or debt) that they then market / sell to the rest of capital markets

2-3 years of this work is seen as relevant experience for junior positions at:

• Private equity (PE) - buying/investing in established companies that are not traded publicly
• Venture capital (VC) - investing in early stage startups (shot gun approach)
• Hedge funds (HF) - public and private markets

For further career progression, MBA or CFA might be needed

Typical progression would be:
Intern -> analyst -> junior associate -> senior associate -> vice President -> director -> partner

It's (really) competitive, with common prerequisites:

• Finance/Economics/Math major from Top 20 colleges
• GPA > 3.5 out of 4
• Extensive network
• Side projects, leadership experience is a bonus

The ratio of technical skills you have over the money you receive, is relatively low. Soft skills count much more

You know what? If you take this path, just work your way up with no conflicts / controversies, and live below your means -> you are guaranteed to have at least 8 figure net worth by the time you are 50. If you just want the money - this is the way

Deep tech entrepreneurship

In 2020's the whole tech industry, effectively got divided into:

1. Software - if the product is made from computer code, data and IT services, then most likely it is a software. In this case, you need to use other software to build your own software product. It is considered mostly a solved problem. If founders in this space are looking to raise funds, they are subjected to a lost of scrutiny by investors
2. Deeptech - products that are hard to develop and design (time and cost intensive). They are also more often that not:  physical and tangible in nature

And this could include entire industries, like:

• Energy
• Computer hardware
• Defense
• Aerospace
• Biotech
• etc..................

The way you would earn (a lot) is through equity stake that you earning of which you can "justify" through

• Bootstrapped model/prototype before raising the fund
• Your work on the product itself

You would "typically" do:

• Build a 3D model in CAD, produce a pdf paper on your concept
• Make the presentation. Raise seed funds
• Hire a team. Get space for a lease
• Break your product into many small parts, and start creating those with constant updates to your investors
• Assemble your MVP (Minimal viable product)
• Raise round funds (A, B, C,......)
• Build better prototype. Scale production

Key considerations:

IB/PE/HF

• IB - 80-100 hours per week of work. After transition to PE hours are reduced to 60-70 per week. Bonuses in cash
• Has strong defined culture. Less meritocratic
• Strongly defined corporate hierarchical structure
• Business dress code is present
• Ageism is present. The older you are, the less likely it is to get a junior level position.
• Need strong communication skills. Important to build relationships
• IB -> PE/VC/HF and other finance related exit opportunities
• Education: Finance/Economics/Math bachelor -> MBA

Deeptech

• Founders also work like 80-100 hours per week, for low early pay. They receive equity instead of money as a bonus
• Working culture is more defined by the area your HQ is located
• Corporate structure is mostly defined by local laws and regulation. Employee hierarchy is quite flat
• Wear whatever you want
• No ageism. It's not uncommon to have founders in their 70's. What matters more is your knowledge and expertise
• Need strong communication skills. Important to build relationships.
• Venture capital is one of the exit opportunities, along with product/project management, and managerial positions in tech.
• Education is typically graduate STEM degrees. Applied physics is arguably the best major for this.

Success is not guaranteed. But It might be a function of your obsession

To be honest

There are some funny observations, I've read:

• r/FinancialCareers some people regretting pursuing financial career, citing that entrepreneurship would've been a more relaxed and lucrative path
• On tech Twitter, saying that getting a corporate, high paying job in an established company would be a more stable choice

These two seem to be real pathways toward earning >8 figure net worth by late 40's early 50's

I might be wrong in some of the things mentioned, but it's not the point

The truth is: I don't know what to do. What to choose. I am lost. I can't decide. I am already 24, And the time is running out. I have to act fast, preferably now