Founder of YC backed startup or IB analyst at GS/MS
I interned in GS TMT/MS Tech and signed my return offer for this July. I enjoyed my summer and liked the work, but after returning to school, I decided to found a startup which has gotten some decent traction and recently got into YCombinator.
I am struggling with making a decision on what I should do, whether to continue building this startup and not go back to my IB job or to quit the startup and work the IB job (I know I don't have enough time to do both).
Any advice?
Would personally go all in with the startup due to the asymmetric risk reward profile. Worst case scenario you still have the experience under your belt and can use your banking network (which you should maintain whilst pursing your startup) to get back into banking but maybe not at the GS/MS level.
why the hell would you not go with the startup?
Most YC startups go nowhere. The benefit of going there is to build a startup network of liked mined individuals, NOT to make money (yet).
Unless you’re ready to be stuck in a game going startup to startup for a few years until you hit it big, go with the return offer.
You can always enter the startup game again, but after a few years of going startup to startup, you’ll be too jaded to do banking as a late-20s Analyst then.
how did you come to the conclusion of "Most YC startups go nowhere" ?
Is there any data to support this?
I don't have hard data to prove this, but for anyone who joins YC, it's very sobering to look at Bookface and see previous batches (8/10 companies in each section are gone, either failed or acquihired in ~3 years)
Defer the banking offer for 1 year. Do the startup. If you don't have PMF in that year then go to banking.
Sounds like the best option if Im able to do this, should I be honest with my staffer when asking? Do they allow deferrals to happen?
I would go through HR. Go with "personal reasons" - no one wants to hear you are doing another job and are trying to make it big and ditch the offer in a year
They do defer but it's generally for medical reasons, very sick family member. I would only try to defer if you are otherwise set on the startup and are reneging anyway. It certainly won't inspire confidence
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Totally depends on your situation!
I had a startup idea as well, conducted in-depth research and had also been guaranteed funding from my business school entrepreneurship institute. However, I have decided to pursue with FT IB at a BB because I have to fund my siblings tuition and put food on the table for my family. So if you can afford to take risks, then I'd advise to go with a startup. Even if you fail, you'll have a unique experience compared to 1000s of analysts who share a same profile. You can use that experience to get into a Masters or MBA program to pursue IB. But if you can't afford to take this massive risk, then go for IB.
Do both until your startup makes more money than your IB TC and then break off. Who cares if you're bottom bucket, the resume line in itself is a free safety net. Plus, you probably can work on the start up from the office without anyone knowing if you memorize the correct keyboard shortcuts
tbh there's a low chance of him succeeding at a startup if he doesn't put in his full effort. I think taking the YC offer means that you have to pull a lot of effort into networking with other YC founders and generating leads/growth for your startup since the YC investors are putting capital into your startup. Also, my 2 cents are that it is better to choose one option and give it your all rather than half-ass both things.
PM me. In a similar position and have some thoughts.
OP - go with the startup. It's an experience you'll never replicate… how many companies get into Y Combinator???There will always be another GS/MS internship OE. If you've got the offer once, you can do it again. Same cannot be said about YC. Further - the fact you've got return offer from BB and a startup shows you're clearly extremely capable. Utilise this.Imagine in 10 years, are you going to regret slaving your life away for some asshole MD, or taking a moonshot on your own startup? I know which I'd regret…
There’s a lot of super smart people here but for a decision like this please go find someone you trust …. That is senior in their career.
Startup and it’s not even close
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Go to a trusted mentor and talk about this :)
But as much as I can be helpful from a venture / growth equity perspective... YC has gotten a lot more commoditized in recent years. It's absolutely still a great program / badge and garners respect, but classes have gone 50 -> 200 -> 600 (maybe the numbers are off, but roughly). I would take a long hard look at the team and problem in front of you, and how much conviction you genuinely have.
If YC believes some theme is interesting (i.e. LATAM payments rails), they will go out and back a variety of qualified founders who each have a unique angle. Thus I would go and build this if you have 80%+ conviction in your unique angle, meaning (1) you know the problem you're solving inside and out (better than 99% of others) because of a background, insight or experience you've garnered (2) you've spent time discussing your MVP/solution, in-depth, with experts in the vertical who put their weight behind you, whether VCs, former founders, or operators at leading co's. and (3) believe you have a founding team, or the ability/network to build one, to complement your strengths and plug key skills particularly in engineering and sales
I know of folks exactly in your position who went startup never looked back... and have a lot more 0's to their name today. Also know of folks who went startup and then hustled to get back into banking / PE / etc. when it didn't work out
Sounds daunting, but all that is to say it is really a gut check at the end of the day... as are most things in startup / seed investing land :)
YC classes are nowhere near 600. It is around 200.
Source: My brother is a YC founder who exited. OP, take YC and run. You won't have a shortage of options post YC even if your company fails.
Are you an idiot! You have a startup with quantifiable social proof. Don’t fuck up your MVP during y combinator and get funded man - living the dream
Go to YC. This shouldn't even be a conversation.
Damn, Never knew we had a CEO of an Investment Bank on here
you know anyone people can lie, right?
I run a small boutique, went a different way as an associate vs. going to the buyside. No lie, but also no big deal :)
The vast majority of people at GSTMT or similar groups aren’t going there to stay (although of course many choose to stay on longer) and are looking for exit ops.
If you’re eventual goal is anything in tech business / VC / most growth equity, a startup sets you up as well if not better than banking.
If the goal is MFPE, you probably aren’t getting there unless you’re startup hits it big (and even then you are joining as an operator likely), but if you’re goal is to go work at a VC fund or something you probably have better odds from a startup founder
Do the start up and dm me the md / Vp name who hired you Thanks Crepes
Do you have time to apply to HBS 2+2 or maybe GSB deferred admissions? Would personally consider that + startup
The YC start up would pave a good essay and experience to HBS
YC startup 110%
Id do gs tmt . Gives you street cred across industries if you don’t like tech
Step 1. Assign heads and tails of a coin for each decision.
Step 2. Flip the coin
Step 3. Decide to do the thing that came up on the coin flip.
Step 4. Listen to what your heart is saying after the decision is made. Do you feel relief? Then carry on. Do you feel regret? Then do the opposite thing which was what you wanted anyways.
Damn. This is a great life advice in general.
In what other circumstances would this work well for?
Bro, tell us the startup idea. If you don't wanna do it I will be happy to take over.
What would the comp be at a YC backed startup at the analyst level?
If I were one of the top tier tech banking groups, I’d love to bring on an analyst who went through YC. Don’t see why truthfully asking to defer would be an issue.
Agree - they would develop a unique experience and skillset from working at one to transition well to other roles.
Let me join you on the startup path :)
Seriously though I would love to connect with you and discuss the startup path… I’m an incoming SA, and ib is my current plan, however I really would love to explore startups.
Wow that is amazing - sounds like a great opportunity. Do you get any expertise or guidance from any of the investors to build your platform, or do they simply drop a check?
Welcome to the YC fam! I don't think I've ever revealed this on WSO before, but I'm a YC alum myself. Not quite OG yet, but I did YC back when the program was still fully in-person in SF/Bay Area (none of that remote shit)
Do you have access to Bookface yet? If so, hit me up. Be happy to help you think through this decision.
I have to stay anonymous here so I don't dox myself. Since DMs are out since I have to stay anonymous, maybe you can write the title (even partial is fine) of a Post you have created on Bookface so I can find you.
If that is out, just leave a comment on a post of your choice (preferably one that has zero comments, so I can know its you, though as long as you are the only W23 in the comment section of a post, that should be fine)
Or if you have some other way that I can identify you, let me know.
Here's the post I commented on - looking forward to chatting!
"~6-7 YC founders looking for SF office space for W23"
Hey! I found you! I did a double-take for a second because I know someone with the exact same name... ha, but it couldn't be the same person... (the guy I know is a Managing Director in his 30s)
Anyways, this plan was a complete success, or so I thought, until I realized I'm not able to actually click your profile to view it (to get your contact/email) in Bookface yet because you are in the latest batch and not "launched" yet.
You might have also seen this before, but I got the error message: "For now that profile is accessible only to founders from the same batch. It will become visible when the company launches."
YC does this to protect new founders from YC alums who are also VCs/investors/etc.
Anyways, I found you on LinkedIn, so check your messages there!
= = = = = = = = = = = = = = = = = = = = = = = = = = = =
TL;DR - Found you! Check your LinkedIn messages!
did you go back to IB after YC? Your tag says you're a 3rd year analyst in IB. If so, why did you go back?
It's not really comparable. One is obviously your dream scenario where you have your own company and are backed by the name that comes with being a YC company with obvious downside for failure and unlimited upside for success, but the other is a highly risk-averse option that gets you into a track that will make you "rich" assuming you do the whole banking > PE > greatness route.
If you're confident in the success of your idea, go with your gut and go all in on your company. If you're not, and you think it'd be better for you to pursue banking first, that's also fine. Just remember there's no right or wrong answer and that either choices are perfectly solid. Good luck and hope you pick what makes you feel good about your decision.
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