Hey everyone – I’m currently in UMM PE, previously IB at a top BB. I’ve been building a startup on the side and am about to close pre-seed funding, likely going full-time soon. Trying to assess downside if it doesn’t work out—would founder experience be viable for strategic finance roles? Appreciate any insights!
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I think it completely matters how old you are the younger the better if you have security to rely on parents or if you have an emergency fund just in case if it fails, you’re not completely in the dirt. Coming from someone who started my start up full-time then went into finance. I don’t see anything against it and honestly love the idea
Yeah all good on the savings front, just wondering if my startup experience would be good for a strategic finance role. Thanks for quick reply!
Based on the most helpful WSO content, transitioning from a failed startup to a strategic finance role is definitely viable, but there are key considerations to keep in mind:
Valuable Experience: Founder experience, even if the startup fails, is often seen as a strong asset. It demonstrates initiative, leadership, and the ability to handle ambiguity—qualities highly valued in strategic finance roles. Your ability to articulate what you learned from the experience (e.g., managing financial models, fundraising, operational challenges) will be critical.
Perception of Failure: While venture capitalists (VCs) may view failed startups as a learning experience, buyout-focused private equity (PE) professionals might be less forgiving. However, strategic finance roles, especially in startups or growth-stage companies, are more likely to appreciate the operational and strategic insights you gained.
Networking and Storytelling: Your ability to leverage your network and craft a compelling narrative about your founder journey will play a significant role in securing a strategic finance position. Highlight how the experience has made you a better problem-solver and strategist.
Target Companies: Early-stage startups (Series B-D) or companies with lean finance teams are ideal targets. These organizations often value entrepreneurial experience and the ability to wear multiple hats.
Exit Opportunities: If the startup doesn’t work out, your background in UMM PE and IB at a top BB, combined with founder experience, positions you well for roles in corporate finance, FP&A, or even back into PE/VC, depending on how you frame your story.
In summary, founder experience can be a strong differentiator for strategic finance roles, provided you effectively communicate the skills and insights gained during your entrepreneurial journey.
Sources: From PE >> Startup >> Back to PE, Q&A: From Sellside Research to Strategy & Finance at Rapid Growth Start-up, https://www.wallstreetoasis.com/forum/venture-capital/founding-a-startup-exit-opps-if-things-go-under?customgpt=1, Tech As An Alternative to Finance, Q&A: From Sellside Research to Strategy & Finance at Rapid Growth Start-up
horrible mindset for an entrepreneur btw. you should not prepare for failure. go all the way.
Can you PM me? Would love to hear how you got a venture going on the side
Sounds like a really interesting position to be in, would love to hear how you were able to build a venture on the side (happy to pm as well)
Quite a risk averse founder, not sure I would want to fund you without you having complete conviction in your startup. Already thinking about exit opportunities?
exactly! success is not for the faint of heart.
I mean depends a lot on the startup and how/ why it fails. I do think you’re thinking too “small”. I’ve seen/ heard of startup founders :
— getting “acqui- hired “ by another startup in a cushy lucrative spot (you have to be technically oriented but north of $500k here)
— become a VC venture advisor / operating small “p” partner .
— doing venture / growth on the investing side (depending on experience here )
— retire and fuck off abroad
You only fail if you quit.
If the first breaks, go again.
You got this man
Yes, it would position you for strategic finance roles.
The more common path in early-stage startups for failed founders is a 'bizops' role with a very amorphous, ambiguous set of responsibilities that more or less correlate to "go where the fire is blazing hottest and figure out how to fix it".
Another path is to go to a 'breakout' startup ($10m+ of ARR, although all the AI nonsense is making things different now) that has scaling problems and needs people with strong hands and an iron stomach to build a structure around something that's already proven to work. Here you get a specific title, because things have codified enough that there are distinct departments or teams.
A final option is to go to a fund, either as part of the investment team or as an EIR (with the implicit arrangement that you're going to try again and they'll give you money). Your options here will be predicated on who you raised from for your first company, how much you raised, how far you got before shutting down, and how good you are at the politics or soft skills of managing relationships in the venture industry.
Lastly, this is unsolicited advice, but as a repeat founder and an investor in founders, I want to encourage you to reflect on whether this is the path for you.
If being a founder (and signing up for the sickening, nauseating, shred-your-insides lack of certainty or help or resources that comes with it) truly is your path, then any other role is just a temporary interlude before you're back at it again.
You "fail" only when you stop trying. You can pivot an unlimited number of times inside your company until you run out of money. You can technically keep going after running out of money, as long as you are willing to work without income and probably without teammates. If unpaid bills stack up too high but you're able to keep going somehow with no money, you can close that legal entity, open a new one, and keep rolling.
I am not demeaning you for thinking about how to get your life back on track. I'm saying that your need to hypothetically do so correlates inversely with your willingness to keep on in the face of hellfire.
Good luck, and congrats on lining up the pre-seed round.
Were you a repeat founder while a Partner in PE? What kinds of businesses did you start and what was your role in them?
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