Banking vs Growth Buyout Analyst Programs For Venture Growth/VC

Hi All,

Recently received FT return for upper-mid tier EB/BB (Think Laz/CVP/Citi) in tech group and also deep in the process at a smaller growth buyout firm. Long-term goal would be venture/venture growth in more interesting companies and wondering what would be better to get there?

A few things that I'm weighing as parts of this decision:

  • My group doesn't historically get good looks from the top GE/VC/Venture Growth Firms, but it might be a product of self-selection, as we traditionally place lights out into PE, so it may not be a direct path into the venture/venture growth firms I'm looking at.
  • The growth buyout firm I'm in the process for is definitely not a brand name, but has solid investments and around silversmith fund size (~1B)
  • Definitely open to sourcing and wouldn't mind it--because modeling isn't a huge part of VC/venture growth, technical training isn't a huge consideration for me
  • Also looking at product management as an alternative career to break in, have internships in the field with a couple big tech companies and could probably successfully recruit for it FT (at a top CS school)

Pretty conflicted on this and wondering what general opinions are?

8 Comments
 

Based on the most helpful WSO content, here are some insights to help you weigh your options between a banking role at an upper-mid tier EB/BB and a position at a smaller growth buyout firm, considering your long-term goal of moving into venture/venture growth:

Key Considerations:

  1. Historical Placement and Self-Selection:

    • Banking Role: Your tech group at the EB/BB might not have a strong track record for placing analysts into top GE/VC/Venture Growth firms. This could be due to self-selection, as the group traditionally places well into PE. If your goal is venture/venture growth, this might not be the most direct path.
    • Growth Buyout Firm: While the firm is not a brand name, it has solid investments and is comparable in size to the Silversmith fund (~$1B). This could provide a more direct route to venture/venture growth roles.
  2. Sourcing vs. Technical Training:

    • Banking Role: If you are open to sourcing and do not prioritize technical training (modeling), the banking role might not offer significant advantages in this regard. VC/venture growth roles typically do not emphasize heavy modeling.
    • Growth Buyout Firm: This role might offer more relevant experience in sourcing, which is valuable for venture/venture growth positions.
  3. Alternative Career Path - Product Management:

    • Banking Role: Your background in tech internships and being at a top CS school could make you a strong candidate for product management roles. This could be a viable alternative if you decide against a finance-focused career.
    • Growth Buyout Firm: While this role might not directly align with product management, the experience could still be valuable if you decide to pivot later.

General Opinions:

  • Networking and Exit Opportunities: The brand name of the EB/BB might provide broader networking opportunities and a stronger alumni network, which could be beneficial for future career moves.
  • Firm Size and Exposure: The smaller growth buyout firm might offer more hands-on experience and exposure to different aspects of the business, which can be advantageous for a career in venture/venture growth.
  • Long-Term Goals: Consider which role aligns better with your long-term goals and offers the most relevant experience for the venture/venture growth space.

Conclusion:

Given your interest in venture/venture growth and openness to sourcing, the growth buyout firm might provide more directly relevant experience. However, the brand name and networking opportunities of the EB/BB should not be overlooked. Weigh these factors carefully to determine which path aligns best with your career aspirations.

Sources: Growth Equity vs. Investment Banking for Undergrads - Thoughts?, Value Buy-out vs Growth Buy-out Discussion from Associate Perspective, Tech Growth Equity vs Tech Leveraged Buyout Firms, Why Growth Equity vs Buyout?, Reconsidering banking after receiving offer... help?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Yes, saw that but looking specifically for perspective on the best route into venture growth / VC rather than the analyst programs themselves

 

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