Worried about leaving IB and unemployment when chasing dreams

Based on the most helpful WSO content, here’s what you need to know:

1. Returning to IB After a Sabbatical or Startup Attempt:

   • It is possible to return to IB after a year-long sabbatical or a failed startup attempt. Several WSO threads highlight individuals who left IB for entrepreneurial ventures or other pursuits and later returned to banking. For example, some have rejoined their previous banks at the same or even higher levels after a break. However, the key is to maintain strong relationships with your network and ensure your story is compelling when explaining the gap.

2. Timing Your Exit:

   • Leaving after completing 2 years as an IB associate could be advantageous. Completing the program solidifies your experience and makes your resume more competitive if you decide to return. It also provides a stronger foundation for pivoting to other opportunities, such as PE or startups.

3. PE as a Fallback Option:

   • Accepting the UMM PE opportunity before pursuing your startup dreams could be a strategic move. PE experience is highly regarded and can serve as a strong fallback if your entrepreneurial venture doesn’t succeed. Additionally, PE could provide valuable insights into business operations and strategy, which might benefit your startup journey.

4. Examples of Similar Paths:

   • WSO threads mention individuals who left IB to pursue startups or other ventures and later transitioned back into finance. For instance, one user shared that they left IB to join a startup incubator, and even though the startup failed, they found the experience more fulfilling than staying in IB. Another user highlighted that taking a break or pivoting to a startup can make you a more interesting candidate when returning to finance, as long as you can articulate the value of your experience.

5. Key Considerations:

   • If you decide to take a sabbatical or pursue a startup, consider registering an LLC or framing your time as entrepreneurial work to avoid a perceived "gap" on your resume.
   • Keep in mind that the finance world values a clear narrative. Be prepared to explain how your entrepreneurial experience aligns with your long-term career goals.

Ultimately, whether you choose to leave now, after completing your associate program, or after gaining PE experience, the decision should align with your personal goals and risk tolerance. If you’re passionate about the startup world, taking the leap could be worth it, especially with a solid fallback plan in place.

Sources: Getting an MBA and coming back to IB, Two-Year Sabbatical/Break from PE, https://www.wallstreetoasis.com/forum/venture-capital/founding-a-startup-exit-opps-if-things-go-under?customgpt=1, https://www.wallstreetoasis.com/forum/investment-banking/breaking-into-private-equity-from-banking?customgpt=1, Breakdown of Post-IB Exit Opportunities