Launched a startup - time to call it quits and go back to S&T?
I worked as a credit trader at a BB based in London, UK for around 4 years after 1 year in DCM.
I left around 1 year before being promoted to VP to launch a fintech startup focussed on credit investing. I've been working on this startup for 3-4 years now, we went live earlier this year and have got some solid traction and we've raised close to $1m in equity funding, but it's not like I'm expecting to exit at a $1bn valuation in the next few years.
My worry is that I'm 30 now, if I run this startup for another few years and it fails, going back in S&T will be much more difficult having spent 7 years out of the game.
Do I go back into S&T now, grind for 5-10 years and hope to make MD? Other factors like marriage, kids etc. are going to appear on my radar soon which will be tough to manage on a startup salary
What would you do?
I encourage my founders to believe in their mission until they really fail.
It sounds like your company is on the right track, without knowing any details of course.
Focus on growth, scaling the business and how to raise the next round.
Thank you, I appreciate your input
For further context (and why I'm thinking about winding down) :
- We have around 6 months left of runway, we're in the process of fundraising now but it's obviously not guaranteed
- Even if we fundraise that's not a guarantee of future success, we could still end up winding down after a series A in a few years when it will be much harder to go back into S&T
- My co-founder and CTO is heavily considering resigning after being offered $800k pa at an AI scaleup (can't say I blame him)
I feel like all these factors make it a huge uphill battle from this point, and I'll essentially only have a 30% stake in the company after our next funding round
Strengths in startups are typically derived from:
- management
- unique product with a decent amount of traction
- either a unique market position or gaining market share with unique features your competitors are lacking
If you and the team believe you will not be able to compete in the market, either now or in the near future - then you should consider ramping down the startup. Considering the unique IP you may have, the staff you would lose, and more.
Is there an opportunity to sell the company instead of just calling it quits?
I was in a similar position. Also folded due to cofounder disagreements, and months of runaway (though they did raise, things always seem to turn around at the last moment). It's not easy. Headhunters will mostly ignore your calls after being out of the game and having an unusual background... Your best bet is to lean into your network, or further develop one. Looking at emerging asset classes/ areas also makes the transition possible. Alternatively, you'll be valuable for other fintechs and alt data companies, especially in product leadership roles.
All that said, everyone's situation is different, but try to avoid folding completely. Losing an important co-founder would make it tough to recover or even raise. And while 6months of runaway is an eternity in startup land, completely understand it is extremely scary. But if you have some traction along with unique IP, worth trying to sell/ merge with another player in the space (your board might force you to do this anyways). Might be a higher EV decision for everyone in the long-run.
Nothing to really add here, but just curious how does someone with an entrepreneurial mindset who has achieved what I interpret as decent success ever want to go back to a BB corporate gig? Successful founders generally don’t have that employee mindset, especially when it comes to grinding for an employer.
I recently left finance to join a startup and could never see myself going back and climbing the ranks to MD in banking (did A2A), regardless of the success of the entrepreneurial pursuit.
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