Best Path to VC / Growth from Strat Fin or Corp Dev?
I have 2Y of tech banking and 2 YRs PE & 1 year of strat fin under my belt. I would love the option to explore VC or growth later on but right now it's not attainable.
My next move is either to:
a) Strat fin at well known Data labeling AI company (handful you know) -> not sure if any M&A but thinking more strat fin vs. M&A
b) Strat fin + Corp dev at lesser known pre-IPO software company (~35% growth) but very acquisitive
I'm leaning more towards b given the corp dev angle of still doing deals & still an investor hat on. However, a is more well known and the finance org / work is more AI forward and may be more applicable to AI investments in VC/ growth.
Would love your take on this.
Based on the most helpful WSO content, your decision should align with your long-term goal of breaking into VC or growth investing. Here's a breakdown of your options:
Option A: Strat Fin at a Well-Known AI Company
Option B: Strat Fin + Corp Dev at a Pre-IPO Software Company
Recommendation:
If your primary goal is to break into VC or growth investing, Option B seems like the better choice. The corporate development angle ensures you maintain deal-making experience, which is critical for transitioning into VC. Additionally, the pre-IPO environment and exposure to acquisitions will help you build a narrative around understanding growth-stage companies and scaling businesses—skills that are directly transferable to VC and growth equity.
However, if you have a strong interest in AI and believe that the AI-forward work at the well-known company (Option A) aligns with your long-term investment focus, it could also be a compelling choice. In that case, you would need to actively network and position yourself as an AI-focused investor to bridge the gap to VC.
Ultimately, the decision depends on whether you prioritize deal-making experience (Option B) or brand name and AI exposure (Option A).
Sources: https://www.wallstreetoasis.com/forum/venture-capital/corporate-venture-capital-vs-independent-venture-capital-firms?customgpt=1, Corporate Strategy vs Corporate Development, Private Equity vs. Venture Capital in 2018, Q&A: Corp Dev > Strategic Finance > VC
Heavily based on my experience of being a "one man VC".
I think the best path is to choose something that gives you deep exposure to very specific technical, operational, and experiential problems in a few specific domains.
That's how you really build a network is to be around people solving similar and adjacent problems.
To quote some famous people like Roelof Botha, VC is not an asset class.
How have you liked Strat fin post PE?
To be blunt, I think you're getting further away from your goal, not closer. Let's say you'll spend at least a year in this job, so 6+ YOE when you look to move. That puts you at Senior Associate / VP level, which is often when all your peers are also looking to make moves. So you're competing with people who have more relevant recent experience than you, for a role where your biggest comparative weakness (i.e. volume of relevant execution reps) is the most important factor. Look around these boards -- the midlevel lateral market has been a bloodbath at all stages for a few years now.
The best advice I could give, which is better suited for early-stage VC, is to become enmeshed in a local technology community. Meet founders, see dealflow, network with investors, make intros, etc. But if you're taking that path it doesn't really matter what your day job is.
Thank you. Appreciate the helpful honesty. The issue is right now I'm time constrained at my current job (i.e. PE Portco - on contract until Feb) + jobs postings are fewer. I've also tried my hand at recruiting for growth in last year but struck out at a few firms I think due to a) limited deal reps b) weird narrative of going to PE PortCo (from my PE firm) and wanting to go back to investing. I'm really trying to reset right now & optimize for the future.
a) Given deals / reps is the factor, I think you're probably recommending me take option B then?
b) I'm also open to coming in as an associate / entry level - not sure if age is a factor for hiring though?
c) yea, seems like the overall message for more early stage roles is to start acting like a VC - networking to get to know all the founders / investors.
do you view going back into tech banking (SW sponsor coverage - what I started out doing) as a viable route or that just shows regression?
I don't think either of the options you listed are very good. Rare to see people move back from corp dev due to perception that 1) you've checked out and are optimizing for lifestyle, 2) you're just an order-taker who doesn't need to be as thoughtful about industries. Internal finance functions don't really get any respect in either the institutional investing world, or at startups / scaleups for that matter.
I'd take banking over that, but you need to be leaning in harder for true buyside seats. Waiting for job postings has never worked for anyone... get out there and network!
This thread has been very helpful. Any networking tips for someone on the sellside working in a T2 city? Feel like X makes networking with VCs/founders easier than ever, from anywhere, but not sure how to do that meaningfully if I'm not in NYC/SF
What was the reason for going to the PE portco and why the tight timeline? Were you basically pushed out of your PE firm and this is your transition job for a few months?
Seems like the move to the portco wasn’t all that helpful for your end goal so trying to understand the narrative there
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