Fork In the Road: Finance or Startup

Go for the startup. This country needs more entrepreneurs, not financiers. And I need that buy side gig. Even if your startup bombs you'll have a great story for b-school apps.

If you get a spot in one of the more established incubators I would suggest taking it. We're at a point in time where if you were to successfully finish a term with Y-combinator you'd all but guaranteed a sizable seed round. More importantly you'll be grow your network of entrepreneurs and VC firms immensely. You may not the right idea but you have a chance of meeting someone who does. Finally, if that route doesn't work you've given yourself an edge in breaking back into finance as a VC which may combine both your passions.

Hahaha. Great Response. I agree, with you, but to be honest, I'm not really an idealist. I am a capitalist. I'm sure i don't have to do much explaining on here, but although entrepreneurship is definitely commendable, that is not what attracts me to it. Creating growth/Value is what i am interested in. Whether that be in a future portfolio or a future company.

Great response Sean518. Really appreciate that perspective.

Just go for it. If you work hard you'll succeed at anything.

Entrepreneurship. Do it dude.

I appreciate the encouragement. But unfortunately after having worked as a financial analyst as well as always being passionate about investing, i have been tainted in a couple ways. For one, i cant help but analyze both opportunities and asses the potential risk vs return. As a value investor, the finance career is the obvious choice (Steady Growth in income, Structured Plan) . I wish i could shake this mentality but because I have immersed myself in this world it is hard sometimes to step back. The other bit which i have realized is most disturbing is that I find myself thinking that I am throwing away a path to "Guaranteed" (obviously bullshit, but definitely perceived) "wealth". I have obsessed over becoming a PM @ a HF for a while now, Obviously when you study these guys incessantly your perception of money and compensation can really become distorted. (I.e. The last book I read "More Money than god") . I am struggling with the anxiety of throwing away this path, although entrepreneurship may be the "right" thing to do.

I am sure other older members have probably dealt with similar feelings. Maybe they are gone from this site now because they chose to jump. But for the ones that might have made a similar decision, I, and i think others, would appreciate your input on the matter. Thanks again.

I would agree with above posts - go for it. If you succeed, you can make more money (and faster) than by going HF way. In the case you don't succeed, you will still get very valuable experience, which will be helpful not only for b-school applications, but in other jobs as well. Of course, following entrepreneurship road will be difficult - nothing is guaranteed. However, you are young and you seem to have a good plan. You don't need to provide for a family, I assume, so your responsibilities are limited. Besides, if you are enjoying watch companies "grow", you might be more of a VC material than HF, especially if you have background in tech or biotech... Your own venture may ultimately lead you to VC.

I don't have a family to support, only thing tethering me is student loans from undergrad. (I understand the concept of undergrad debt is frowned upon here, but it was a necessary evil to get me to where I am from where I came from)

You bring up a point which is really one of the main sources of my hesitation. "You seem to have a good plan". This is the crux of the problem. I do have a good plan, and I have always told myself, stick to the plan, work hard, and you will succeed. This start up would be going totally away from "The plan".

Also, on a side note, I have always been interested in VC work but only have surface knowledge of how they operate. On the other hand, I have done alot of research and reading about buy side investors/ HFs and therefore that is were my interest stems from. Big fan of Julian Robertson and the Tigers.

However just as big of a fan of Elon Musk: Paypal/Tesla/Space X

Please do not interpret these negative responses as lack of enthusiasm for my potential company, but like I said, I am very analytical. This kind of feedback and discussion is really helping me work out the kinks before just taking the plunge.

Guy here who's facing the same problem--entrepreneurship vs. a corporate route. It'd be a clear first choice EXCEPT for the fact that I also have a lot of student debt so I don't know if I can pick a career with such a high Beta...

So I recommend you gauge how well your start-up is going to be. Develop a prototype and customer validate. Figure out the execution to scale your business (because an idea is fucking worthless. It's all about bringing it to market and staying afloat vs. the competition). See exactly how viable doing entrepreneurship really is off the bat, because the truth is debt needs to be cleared off the table.

If realistically you can't execute it yet, do VC/consulting, pay off your debts, and jump back into it down the line if you really think you can be a value-add. Just my 2 cents.

try to imagine the last moment of your life. looking back, what would you rather have done?

Can't you do both? Work a job during the day while you work on the company at night? If the company takes off, then you run with it? I understand you have a business plan and ideas and this and that, but you've got to actually start putting the plan in motion. So, if you can do that at night / during the work day / on weekends / whenever, I say do both. That way, you'll have something to fall back on.

As of this morning I have decided to apply to both the Y combinator and Mass challenge programs. I will have to wait and see as to my admission into either. From there I will figure it out. If I get in I will go and spend the summer trying to get this company off the ground. If not, i will continue with the process of moving into ER. I really appreciate the input from everybody. I will keep you guys posted as to my progress.

Sounds like you've already made your decision.

If you have an idea that you believe in, you think it can work after proper due diligence, and the entrepreneur lifestyle is what you want...then go for it. I'm having this debate too.....I'm currently working at a BB and saving money to partly fund my business. I'm pretty much there and about to jump into the new life...I'm very excited. I have ran through A LOT of scenarios in my head for my personal situation....and everything points to a better life with my start up. This is very specific to me though...most people are probably better off staying the IBD path but I have little faith in other people so that is mostly a disclaimer.

You have already started the business by creating domain and a plan for it. I say go for it. I think its better to do and try now than regret later.

Not trying to discourage you, but Paul Graham won't even look at your YC application unless most, if not all the co-founders have a stellar tech background. Same goes for Tech Stars, 500 Startups, DreamIt or any baller incubator. Just something to consider. I can somewhat relate to what you're going through right now- I too have rather aspirational goals of running a macro fund and having been quite involved with 'entrepreneurship' since HS it may not be surprising that I am deeply fascinated by the startup world, and as a consequence I have been in touch with some prominent tech founders and VC investors over the past year. Ideally I would like to lead a leveraged life by being involved with both, and rest assured I am working toward this goal. Go for the kill, take eccentric risks, and never look back.

Thanks for the input. I am aware of this issue. Y combinator stresses the importance of a tech based founder. Fortunately mass challenge, an incubator out of Boston does not. I have a passion for tech but my language/coding ability is primitive. I have prepared wireframes for the site using Balsamiq. However I happen to have 5 good freinds who have tech backgrounds and currently live and work in palo alto/bay area. The real challenge is selecting a cofounder who is right for the company and not just a Freind. Also I have to convince one of these kids to fully commit to the idea ahead of time. I have until the end of the month. I am also still doing due diligence on realistic startup costs as well as potential revenue projections. We will see. I will know by the end of April if I have been admitted to any of the programs. Any Programmers/developers on here that are interested pm me and I'll shoot u the mockups/b plan.

Also, your interests/ aspirations are strikingly close to mine. Keep at it.

^ Don't send the mockups or bplan to anyone unless you wish to get Zuckerberg'ed. It would be far more beneficial if you were to grab coffee with your potential co-founder while being vague about the concept. If their eyes light up and they 'get it' (i.e they're really enthusiastic but not faking it), then proceed.

Thanks for the tip. That was a naive statement on my part. But hey, a winkelvoss style settlement would be a hell of a way to start a macro fund. Haha

haha word.