Joining a startup after analyst years?
Finished up my two year analyst program (LevFin) andl left. I had been recruiting for buyside roles and actually got a solid offer but turned it down because it was a HY HF role, and I didn't want to do public-side. In hindsight I should have taken it given I'm jobless now and recruiting, but that's in the past.
Curious on people's thoughts on joining a startup with ~$20m in Series A funding.
The actual details of the firm aren't important for my question as I'm really just wondering if at this stage in my life this is something I'd want to do. I have pretty much no savings after my analyst stint given I used my An1 bonus to pay off student loans and likely will get fucked on bonus this year, so I basically have enough money to make rent for a while if unemployed but nothing else.
I can probably still land something in UMM Direct Lending and am getting interviews but the job just seems very boring to me.
I guess my ultimate question, let's say I did this, and after a couple years, it didn't work out, what would my options be?
Joining a startup after your analyst years can be a bold and potentially rewarding move, but it comes with risks and trade-offs. Based on the most helpful WSO content, here are some key considerations and insights:
1. Startup Prospects and Career Impact
2. Exit Opportunities if Things Don’t Work Out
3. Financial Considerations
4. Personal Fit and Long-Term Goals
5. Advice from WSO Threads
In summary, joining a startup can be a valuable experience, but it’s essential to weigh the risks, financial implications, and alignment with your career goals. If you’re passionate about the opportunity and can manage the financial uncertainty, it could be a worthwhile move. However, if stability and a clear career trajectory are more important to you, continuing to pursue roles in UMM Direct Lending or similar fields might be a safer bet.
Sources: https://www.wallstreetoasis.com/forum/venture-capital/founding-a-startup-exit-opps-if-things-go-under?customgpt=1, Join startup HF or pursue MBA? Seeking advice.., 1st Year Analysts Quitting?, Would you ever consider joining a start-up fund that your friend started?, Q&A: Returning to PE After a Year and a Half at a Series C Startup
What are you solving for in this next phase of your career?
It sounds like you have a high enough risk appetite solely based on the fact that you're willing to leave finance and quit a high paying job with no plan.
If I were you I'd seek out a fintech start up where you can be their first business operations hire and learn on the job. Offer to do everything from run payroll to building their board decks in order to get as much operating experience as possible. If it blows up, take a step back and see if you want to do more of that or go work at a larger company's corp dev/finance team and figure it out from there.
The goal is to build a broad enough skillset and network to allow you to "figure out" your next step after a successful exit or a failed start up. No matter what you'll learn a ton more than doing whatever someone in direct lending at a UMM fund does.
...Well I didn't quit....just didn't get the A2A promotion as my team lost senior headcount so were downsizing the team in general. Turned down that public side job before I knew about this.
Thanks for the advice though, that's all really helpful.
Yikes, that's rough. That said, it sounds like a blessing in disguise since you're asking the right questions and doing so at a time when you can take maximum risk.
Turning down the public job may feel regrettable but you'd be miserable doing publics if it wasn't your passion and that skillset is even less marketable when you're trying to make a career switch.
I would not hesitate to join a startup with ~$20m in Series A funding, that is the right time provided I like what the startup is working on.
In a similar position to you... where do we even look for these start-up roles? Are there start-up headhunters as there are for IBD / PE / PC etc?
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