Tech groups - early stage

No doubt, the top tech groups (i.e. GS TMT, Q, MS Menlo) are pretty well known. However, I'm curious about which bank groups are most dominant in early stage tech M&A or IPOs? 

For example, I'm talking more about the Snowflakes and Snaps of the world when they were still new as opposed to dealing with more mature tech clients like Apple, Intel, etc. Or, in other words, which bank groups are most dominant working with top startups that engage in M&A and go public?

WSO Elite Modeling Package

  • 6 courses to mastery: Excel, Financial Statement, LBO, M&A, Valuation and DCF
  • Elite instructors from top BB investment banks and private equity megafunds
  • Includes Company DB + Video Library Access (1 year)

Comments (6)

Most Helpful
Oct 20, 2021 - 9:11am

I'm not sure I understand your question. Are you asking about (1) who works with early stage / early growth startups (i.e. Seed --> Series C) or (2) who works with these startups when they are closer to IPO or executing a large acquisition / sale?

  1. There isn't much reason for early stage startups to engage bankers. As they get towards later stages bankers may start trying to build relationships with them ahead of a big exit event, but it's just not a service early stage startups need. 
  2. The same banks you listed GS / MS / Qatalyst are often the ones leading transactions for "startups" of that stage and caliber. 
  • 3
Oct 20, 2021 - 3:00pm

All the top tech BB groups have venture / earlier stage coverage strategies these days. And considering the current private company valuation environment, a fast-growing software company in an exciting area can command a 20x+ multiple on run-rate revenue. So pretty quickly a new company can be worth close to a billion dollars (more if strategic value to a big tech player). All more reason the same players that cover the big tech players are zoned in on covering the good "small" / newer players.

  • Analyst 1 in IB-M&A
Oct 20, 2021 - 5:46pm

Numquam provident numquam labore officiis. Sit id blanditiis debitis quidem unde sit.

Start Discussion

Total Avg Compensation

October 2021 Investment Banking

  • Director/MD (10) $853
  • Vice President (39) $363
  • Associates (229) $233
  • 2nd Year Analyst (138) $155
  • 3rd+ Year Analyst (31) $147
  • Intern/Summer Associate (104) $143
  • 1st Year Analyst (502) $135
  • Intern/Summer Analyst (387) $83