URGENT: What would Position me better for VC? Strategy and Operations Role at a Startup, or Finish out Other Year in IB?
First year IB Analyst in NYC who hates it and was lucky to land a strategy and operations role at a Series C Furniture Startup (lol, not tech or software startup so I assume this makes it maybe not worth it)? Or do I finish out my 2 Year Analyst program?
To consider: have been shooting for strategy or operations roles for startups for months now and this was the best one I was able to land. I know I should continue recruiting and find a tech one but I don't think that would be very possible, especially with deal flow picking up and work getting super busier for me.
Additionally, I would personally love to leave banking after 1 year and just join this offer I have, I am beyond miserable. Lastly, my IB is a massive name but its not any of the EB, GS, JPM, etc. If I was at a top notch firm I would stick it out. Not sure if this matters.
Thoughts appreciated thank you
Ah, the classic dilemma of the finance jungle! You're at a crossroads, my friend, and it's a tricky one, but let's break it down based on the most helpful WSO content and insights from those who've navigated similar paths.
The Value of IB Experience: Completing your 2-year Analyst program in IB, especially at a well-known firm, provides a solid foundation in finance, deal structuring, and a rigorous work ethic. It's a badge of honor in the finance world and can open doors, including in VC. However, the brand of the IB, while important, isn't everything. What you learn and the deals you work on matter a great deal too.
The Appeal of Strategy and Operations at a Startup: Jumping into a strategy and operations role at a Series C startup offers a different set of valuable experiences. You'll likely have a more hands-on role, with the opportunity to impact the business directly. This experience can be incredibly relevant for VC, as VCs value operational and strategic insight into growing businesses, especially those who can understand the nitty-gritty of scaling a company. The fact that it's a furniture startup, not tech, shouldn't deter you if the role aligns with your interests and offers growth opportunities. Diverse experiences can be a strength, showing you can apply your skills in various contexts.
Personal Well-being: You've mentioned being "beyond miserable" in your current IB role. This is crucial. Your well-being matters, and if the role is taking a toll, it's essential to consider alternatives that might offer a better work-life balance and happiness. Long-term success in any career requires passion, commitment, and mental resilience, all of which are hard to maintain if you're miserable.
Transitioning to VC: VC firms look for a mix of finance acumen and operational insight. While IB provides the former, a strategy and operations role at a startup can offer the latter. Both paths have their merits. However, given the competitive nature of VC, having a unique story and a diverse set of experiences can sometimes set you apart. If you're set on VC, continuing to network within the VC community and demonstrating your passion for venture through personal projects or investments can also bolster your profile.
Final Thoughts: Given your situation and based on insights from the WSO community, if the strategy and operations role excites you and you believe it will offer a better quality of life, it could be the right move, especially considering your interest in VC. The experience you'll gain in understanding the operational challenges and strategic decisions startups face is invaluable for a career in VC. Plus, your IB experience has already provided a solid finance foundation.
Remember, there's no one-size-fits-all answer, but aligning your career moves with your interests, strengths, and well-being is a strategy that's hard to beat. Good luck, and may your career journey be as adventurous and rewarding as a jungle expedition!
Sources: Confused Scientist: Where do I fit in? Strategy Consulting, Venture Capital, et al., Private Equity vs. Venture Capital in 2018, PE Senior Associate - What next?, Banking -> Startup PM on who SHOULD join IB, Advice on career and the switch into investment banking
Having experience in finance and in an operational role would make you more attractive for an early stage VC, however if I was recruiting I would wonder if you really learned anything in less than one year in IB. It may be more beneficial to finish your 2 or 3 years in IB, and then transition, but I'm just one data point, you have the best understanding of your situation. If you're truly miserable in IB and think it will severely impact your performance in your second year, then it doesn't hurt to pivot early and invest your time elsewhere. Also to note, VC is a tough industry to break into so I wouldn't plan your entire career just around VC prospects.
Hi thank you for the response. Much appreciated.
I typed up my post fast, sorry if it was not clear, I am currently an analyst 2, I have done a year +6ish months in banking. I also have 2 other banking internships + a venture internship prior. Yes it seems like July / August is not that far away and I should really stick it out, but I have this exploding operational offer I would love to join right now.
What are your thoughts on the startup being a consumer / Furniture startup and not technology or software? It is still very well funded.
What do you mean by consumer/ furniture? What is so innovative about the furniture they are selling?
My .02, stick it out and wait for tech. I'm 30 and have done tech investing, sexy tech startup, so that's my background. Find a job at Scale or Modal or something like that. Langchain etc.
You look at these guys who are super successful everywhere and they did like 5 years at Goldman so don't worry so much. I also know how bad finance can be so it sucks but keep it up brotha
:)
Are you just looking in NYC? If so, I’d encourage you to broaden your geography to Silicon Valley. Despite the negative sentiment here on SF and the broader Bay Area, it’s not bad here but different. Worst case scenario you don’t like it and move back.
in this exact situation rn, what did you end up doing?
If it's me, it comes down to whether you feel you've learned enough. Take your internships/your time in IB/what you did at your school, see what you've learned, and map that out against the descriptions for VC roles you want. Personally, I'd go for Strat & Ops to make yourself more well-rounded. If your job isn't tolerable then you can go for it - you know yourself - but it just depends on your goals and how the next move relates.
This is a misunderstanding of the landscape
doing ops or finance at a tech firm is worthless
you need to show the world you are elite and brilliant and can be a beacon to guide others
that means either you’re an engineer and thought expert on the market, or you can survive an elite and grueling institution like a top IB or HSW
you want to go IB to VC
do not stop for some ops role in between
Thank you for your opinion.
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