VC to IB
Hi Guys,
Lurker here making the first post. Short story, I'm a VC analyst looking to move into IB within the next few months and I'm looking to know if it's feasible or difficult/has been done before/if there's anything about the recruiting process I should worry about. My ultimate goal is to end up at a growth shop.
Long story. I've been at a $100m seed stage VC fund for about a year and a half in NYC. I started after receiving a top target engineering undergrad. Great place, great partners, not a sourcing shop. Short of drafting the term sheets and making final investment decisions, my role is indistinguishable from the partners'. That said I'm tired of picking CEOs on history and personality and want to start evaluating actual companies. I've tried to move into the growth/later stage but have hit quite a few headwinds (mainly concerns about financial experience).
First off, does my overall plan make sense (I'm aware of the hours and change in lifestyle and I'm fine going in as an analyst again)? Has anyone gone from an earlier stage shop to a later stage shop without IBD experience? Would MBB be easier?
Thanks in advance for the help.
Bump
Why not B- School?
I'm worried that getting into a later stage fund post MBA requires demonstrated pre-MBA modeling experience, but I'm not sure. That's the sense I've gotten from a few headhunters I've come into contact with.
If you're hours right now are not IB just learn modelling and all the yadi yada yourself (can be done in 2 weeks) and just apply to IB? I imagine they would consider you readily, especially for analyst.
Although I think going to a top B-School could be a better path
Thanks Bananaker. Do you know anything about how banks would view VC experience (too fluffy, not quantitative)? Also, will being 2 years out be a problem for BB or EB advisory practices for analyst level positions?
I did 2 years as a VC analyst out of undergrad (more Series A / B / C stage at a larger fund though) and am now in MM PE.
However, I had the same initial thought and interviewed with a lot of the top banks happy to come in as a first year analyst. I got much better reactions from the coverage groups (healthcare, tech, etc.) than the product groups (leverage finance, sponsors, etc).
long story short, you should be fine trying to get into IB. Downside is you kind of just missed most of the 2ummer 2015 hiring cycle. You will hit some of the same road blocks that they may feel like you don't have enough finance experience but you just have to be persistent and sell yourself. You should be fine getting into IB.
I got into PE instead only because of luck. I interviewed with around 10 and most just dinged me in the first round because I didn't have banking experience. Luckily I practiced modeling a lot on the side and scored a LBO test which went well helping to an eventual offer.
Thanks for sharing your experience. I am about to learn finance myself too. Would you recommend any books or learning materials? Also how did you practice the modeling?
Bambino, Thanks for the info. Some follow up - 1) When did you start recruiting/ Is the Summer cycle or the December post-bonus period the best time for experienced hires? 2) How did you fare with the banks in as far as offers, assuming you decided to go that far? 3) Did you have the most success with BBs, EBs, or MM banks?
I'd SB you if I had one. Thnx.
VC --> IB in London (Originally Posted: 05/16/2015)
Hey,
Currently an analyst for a small London based VC and whilst I like the work I’m considering recruiting for FT grad positions in banking for various reasons. Ideally I would be looking for TMT (because it's interesting and my experience kinda fits) or Consumer & Retail (just personal preference) coverage groups.
Top school but no prior internships in banking / consulting so I’m basically trying to determine how VC experience is viewed from the hiring side of the desk in London (if it wasn't for Visa reqs I would be aiming for sunny CA, but there ya go).
Cheers!
What kind of VC fund are you at?
The issue is, generally, the skills are not too transferable. Depending on your fund size and what stage deals you invest in VC analysts don't do too much modeling. Or, if you are modeling, it isn't the same as what you'd be expected to do in IB.
I'm sure with networking this could be done, but exiting to one of your portfolio companies and then B-School might be a route to consider?
VC to IB, how to spin past experience (Originally Posted: 12/16/2014)
Hey guys,
This is my first post on this forum so far, ive been on the sight searching for a similar situation but havn't come across one so i decided to ask. Last summer I worked for a privately held investment bank in Manhattan, specifically the Venture Capital division, which focused on raising money for biotechnology companies. Throughout the internship I mostly went though SEC filings on Edgar to source 'sophisticated' investors who understood the industry. I worked really closely with top management and learned a lot from them in terms of how investment banks operate. The only problem is I don't really know the best way to articulate everything ive learned without sounding like a "glorified secretary" who just sourced all day. It's kept me worried because while ive learned a lot but I don't have any concrete financial modeling experience.
That may put me at a disadvantage when applying to the M&A department at a Bulge Bracket. Does anyone have any insight on how to spin this past VC experience in a positive light in the interview process?
I'd really appreciate any advice from someone older and more experienced then me.
Are you doing an MBA or are you in undergrad or? If the latter - then you'l be an analyst and be in good position. You have the understandings of an investment bank, what it does, how things work, etc and that's much more than most. If you are an MBA, are you taking financial classes? to show intent? The banks will teach you modelling etc.
I think its important to show the passion and that you liked what you did. I mean you dealt with companies and have an understanding of a sector. This would make you an easier fit in a sciences or tech banking group, but you could always try to move to M&A or some other group by saying you realised that during your summer stint that you were really interested in (insert whatever other area).
I'm not a banker, have never been but did interview for stuff in college (a long time ago) and deal with bankers and tons of pe funds today (literally the latter pitching to me). So that's my general view. Others may agree/disagree and have more pointed advice.
Good Luck
Venture Capital to IB (...) (Originally Posted: 07/31/2015)
Hello all,
I'm currently trying to make the transition from the VC firm where I am now to investment banking. The objection I keep getting from bankers is essentially "Why would anyone in their right mind want to move from the buyside to the sell side? How do I know that you aren't going to bail out of banking for PE/VC after 2 years?"
Any suggestions? I've got to come up with reasons why the sell side would actually be preferable to the buyside.
That's the central question everything will revolve around. "Why banking?" is something every single intern or analyst candidate gets from each interviewer. It's a special focal point for candidates with prior experience in another industry. You need to have a coherent answer. Some examples might be:
"While I enjoyed my role in VC, I didn't feel I was developing the technical skills that are foundational to a successful career in the industry."
"In my prior role I was too focused on a single industry or space, and I don't want to pigeonhole myself to one thing and one thing alone for the rest of my career. I'm interested in a product group and want to take my time to figure out what to hone in on later."
Whatever you come up with, it's important to be able to speak positively of your prior experience while still showing you're rational and intelligent about why you want to move. I don't think anyone could expect you to be prepared to commit to spending your entire career in banking. Analyst programs are two years for a reason. That being said, you do need to demonstrate you've done your homework and that your decision is rational and informed.
Good points right there, sounds very reasonable.
Bump
Well what is the real reason??
Standard answer here is "not enough bottles or models"
I think it is fairly easy to explain and, contrary to what was previously said, quite a few people made that move (back) to IBD. See below a few reasons you coud mention: 1) I like advising more than investing 2) The constant dealflow in IBD makes the industry more attractive from a learning perspective 3) I like multi tasking and it is not possible when you contemplate making an investment (i.e. I will be working on 3 or 4 different topics at the same time in IBD) 4) My VC experience was too sector specific 5) There is much more mobility in IBD (M&A, products, geographies) 6) I have very good reasons to join your bank
I have interviewed tons of candidates for M&A roles and wouldn't be shocked if someone was giving that speech.
Venture Capital to IB (Originally Posted: 02/12/2013)
Hey Everyone, Quick question...would a venture capital internship at a medium-small firm as a Sophomore a good option to get into IB next year...or is it better to get in at a IB boutique or F100 finance?
bump...
Boutique IB would be better, but VC would also look good. I would go with whatever you are more interested in.
agree with the above poster
Short answer is yes. My junior year internship was at a VC fund. I got a full-time bulge bracket offer right after (a PE/VC internship definitely sets you apart), and am back in VC full-time now. It works.
VC to IB? (Originally Posted: 02/07/2013)
Background: Sophomore at a top Canadian University doing Finance/Economics looking for a summer internship.
I have the opportunity to do a internship at a VC firm in California (around 500M to 1B fund size). I couldn't land a SA position and have started to cold-email a lot of banks. I eventually want to do banking (in Canada) when I graduate and am looking for the best route to achieve that.
I have a couple of options: 1) Go through with the VC Internship 2) Keep grinding and looking for banks who are willing to pick up an intern still 3) I checked out some job postings and was able to find a Treasury role at large Metals + Mining firm. I was thinking about getting some industry experience and leverage this experience when I apply for internships in my Junior year.
Any thoughts are greatly welcomed.
I did a VC internship my sophomore year summer and got offers for IB. PM if you want
Take the VC job. It will set you up well for a top IB internship the following summer. Also, VC funds aren't valued. They have a fund size.
From Venture capital to Investment banking (Originally Posted: 02/28/2014)
Has anyone done this?
It happens from time to time but it's very uncommon
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