Why do an MBA?
I’m going to a target undergrad bschool and I’m looking to go into IB. That being said, I always see the IB—>PE—>HBS route on here. I thought business schools were mainly for pivoting careers and for those who couldn’t get IB out of undergrad. Forgive me, since I’m an incoming freshman and I don’t know all that much about the process. So why go to an elite bschool if the undergrad is enough to get you into IB? Don’t most banks internally promote and not require Elite MBAs? Thanks
Mostly just because most IB->PE types get really nostalgic for their college days after working 80 hour weeks and want to take two years off to party/travel/compensate for not having lives in their early 20s. Plus I know people here joke about the coursework but IMO you learn a lot in MBA classes.
Seeing that you're in VC, 1) how are MBAs looked upon in VC? Totally unnecessary?
2) do you feel like you have a life in your 20s if you go IB -> VC rather than IB -> PE?
3) do people typically stay in VC long term? I know IB -> PE -> MBA -> PE/other is common, but what typically comes after IB -> VC? Do people stay in VC long term? I've heard it's hard to get promoted in VC.
Depends on the firm. My firm is cuspy between VC and growth equity so has a more traditional view on pedigree. Generally it does help though, and the network from a school like HBS or GSB really does help with sourcing opportunities which is really the most important part of your job (more on that below)
I did the traditional IB -> PE thing pre-MBA but I’m certain I would have had much more free time in VC. On the flip side, I think I developed better technical and ops skills from going the PE route which have been helpful during my job now. Plus there’s a fairly meaningful comp difference early on which shouldn’t really matter but it made b school a lot more fun.
Biggest factor to longevity in VC is being able to source interesting deals and getting a look at higher profile deals the top firms are doing. Technical skills are table stakes at this point and the legit platforms will have specialists for portfolio ops etc. Being a shrewd investor who understands industry dynamics and whatnot is important of course but it really comes down to shots on goal. Having a very strong network makes you irreplaceable though which spells a long and fruitful career. A lot of younger / mid level folks will join startups if the don’t want to move up the VC ladder (usually in chief of staff or biz dev positions—think Jared from Silicon Valley).
Also wondering if an MBA is necessary to move up the ranks. I know A2A is feasible, but what're the odds that somebody who wants to stay in banking can go from analyst to MD without an MBA?
Tbh I don’t have an answer but it will be interesting to see if there will be a shift as banks are promoting internal mobility with A2A. Maybe down the line but not in the near future imo. Almost all the MDs I’ve worked with have MBAs and I think it’ll be the norm for a while.
With that being said, I think if you want to make MD and really generate revenues, an MBA is more of a way to expand your network and help you find deals more than anything else. Hopefully you’ll have classmates who start their own companies or others who go to PE and you can help them out.
Appreciate the insight. My biggest worry is I have seen a couple threads that say you shouldn't get an MBA and then just go back into banking.
I'm a rising senior at a target school and have been thinking about doing an MBA down the line. I already have my FT offer locked and was going to take the GMAT this year just in case it comes in handy in the future. That being said, is an MBA really necessary anymore? I hopefully plan to stay in finance for the future and don't plan on switching industries. Just those two years of lost earnings seem very unattractive to me and I'm not sure how much those two years are worth in terms of future income.
Any response would be much appreciated. Thanks!
The necessity of getting an MBA varies by person. For someone already in IB or going to be in IB it may not be necessary as many banks do A2A promotions. For those who don't make it into IB out of undergrad and can't lateral in from another field an MBA become more necessary or if you have your heart set on going to a specific PE firm and you know they require an MBA for advancement then you'll obviously need to go to B-school. It's one of those things worth doing only if it will actually provides a meaningful benefit but not if you're just doing it for the sake of having an MBA. I have an MBA and it's tough to say whether or not it was worth doing.
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