Will this VC internship help me break into equity research later on?
I'm currently finishing my junior year at a semi-target school, and hope to break into equity research after graduating. I recently got an offer as a research analyst (more market research related) at a VC firm, and was wondering if this will help me down the road in landing equity research positions at big banks.
Thanks
Do you have other choices?
Regards
I could look for small equity research firms, but not the big banks because I was kinda late to the game. I did get an interview at a BB, but my lack of finance experience hurt me (i'm a science major).
I don't know how much relevant experience there will be at the VC (though it seems like some) but if you just step back and look at the situation it is by far your (only) best choice...so it doesn't seem like I real question (no offense).
At the very least, it's a starting point and some experience is better then none. What year are you?
Regards
I'm a 3rd year. I have a high GPA and heavy science research experience (data analysis), but it looks like a lot of the banks that recruited at our school are looking for interns for their IB division. Only two of the BB's were recruiting for research analysts. I managed to get an interview for one of them, but my lack of finance knowledge put me out of the race. ( I am self-teaching myself finance though and its not that hard). But ya I would agree with you. This does seem like my best option. Then again, I could go for boutiques, and I know if I tried I would probably land a research analyst position at a small firm. However, having a VC offer at hand, I don't know if it is worth it the recruiting process again. Don't know if it is worth the time.
It is unusual to intern at a VC firm. It should be interesting learning experience and will make for a more interesting resume.
Can you explain your interest in equity research? Since you're only a third year with no financial knowledge, maybeit will be good for you to try the VC thing. What im trying to say is how do u know it's research that u really want?
I have an interest in research in general. I love data analysis and trying to make sense of the it. This seems to be very prevalent in equity research, where you predict market trends and track a sector based on a variety of sources whether it's financial data, company press releases, etc. Being a science student I think would especially help me in the healthcare/Pharma/biotech sector. I am not totally illiterate in finance. I know quite a bit about the market (learned from my father who is involved in the financial sector), but have no formal training.
When I said no financial knowledge, I was using your words... "my lack of finance knowledge put me out of the race" from an earlier post. Not meaning to imply that you are inept. I'm sure it's the opposite.
I would have to echo the sentiments of Wannabedude, and caution you not to over estimate the amount of "market research" you'll see as an equity research analyst. Yes, it's true they need to be informed and knowledgeable about the sectors and sub markets in which their coverage universe operates. But I wonder if you would be frustrated with the fact that there is very little tangible action for your labor. The most that happens is you change a rating from sell to buy or hold to buy, etc. If you worked at a buy side fund, you could actually make money based on your research. Don't get me wrong, research people make money, but they do it based on research subscriptions, which in theory are linked in the quality of predictions. Think of it this way... if you're a research analyst covering the healthcare/biotech sector, you can analyze the market all the want, but the bottom line is you're going to be covering companies in that part of the market no matter whats going on (good performance or bad performance). Hence, there is a greater focus on company specific research (ie heavy accounting focus). If you work at a PE/VC shop there are dozens of potential investments in many different markets, but you can only pick one. Here market research is a much more important factor - in my opinion.
Not trying to discourage you, just trying to share some thoughts. Either way, if you don't have an opportunity to get into ER now, then obviously take the VC internship. You'll have to tweak your story, but I think it will look better than nothing. Also (for what its worth), your finance/science combo will be very attractive to people in research and VC.
Good luck!
When I said no financial knowledge, I was using your words... "my lack of finance knowledge put me out of the race" from an earlier post. Not meaning to imply that you are inept. I'm sure it's the opposite.
I would have to echo the sentiments of Wannabedude, and caution you not to over estimate the amount of "market research" you'll see as an equity research analyst. Yes, it's true they need to be informed and knowledgeable about the sectors and sub markets in which their coverage universe operates. But I wonder if you would be frustrated with the fact that there is very little tangible action for your labor. The most that happens is you change a rating from sell to buy or hold to buy, etc. If you worked at a buy side fund, you could actually make money based on your research. Don't get me wrong, research people make money, but they do it based on research subscriptions, which in theory are linked in the quality of predictions. Think of it this way... if you're a research analyst covering the healthcare/biotech sector, you can analyze the market all the want, but the bottom line is you're going to be covering companies in that part of the market no matter whats going on (good performance or bad performance). Hence, there is a greater focus on company specific research (ie heavy accounting focus). If you work at a PE/VC shop there are dozens of potential investments in many different markets, but you can only pick one. Here market research is a much more important factor - in my opinion.
Not trying to discourage you, just trying to share some thoughts. Either way, if you don't have an opportunity to get into ER now, then obviously take the VC internship. You'll have to tweak your story, but I think it will look better than nothing. Also (for what its worth), your finance/science combo will be very attractive to people in research and VC.
Good luck!
I think you really need to get into the accounting side of things.. ER is alot more than just predicting trends and Dcfing it (I'm not sure how they do things on the biotech sector).. but you really need to familiarise yourself with financial statements to get a proper understanding of the business and how it works.
Theres a few books out there which can help.. i suggest you do a search.
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