VC / Growth Equity Still Attractive?
Am looking for lateral opportunities from MM PE and have been exploring a lot of different options focusing on roles that are slightly more growthy (growth-oriented PE, growth equity, late-stage VC, corp dev at a high-growth start-up, etc.). Have talked to a couple people in my network and there's a pretty polarizing opinion on lateraling over to growth right now.
A few are mentioning how its a great place to jump to in terms of stimulating work and a little more WLB, there are more VC / growth funds and job openings than any time before, and its always fun having conversations with supersmart multi-millionaire entrepreneurs. Others are mentioning how the growth of firms is creating oversaturation, the public markets are showing a revaluation in start-ups (particularly ecomm, consumer, etc.) from astronomical levels which is bleeding into the private markets, and that this will create a crunch in terms of the # of investable opportunities and, correspondingly, # of investors to service those opportunities. These revaluations may also screw over a number of smaller VC firms.
Would love to get others' opinions on how they would think about lateralling and overall trends across the VC / growth / PE industry. Lateralling to firms that are more growth-oriented seems sexier, cooler, and more interesting based on my background (was a management consultant; enjoyed understanding different business models, market sizes, competitive landscape, etc. a little bit more than super detailed financial diligence). That being said, don't want to make the wrong move...
Valuations are going to get clobbered and there’s going to be some unhappy people in this industry. Growth and buyout are oversaturated and overly mature compared to 10 years ago, but could they keep growing? Certainly. Whether growth will be more harshly affected compared to buyout depends on your fund’s thesis and the investments. You don’t need to be a rocket scientist to get how valuations have all gone up, so it hid who the really good or bad investors were. Anyone here can speculate, but the truth is regardless of where you go, at some point the cycle will turn. Go where you find things interesting and let the rest of it work itself out—no one has the right answer and those that do wouldn’t tell you.
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