With the booming development of tech startups in recent years, more and more investment bankers are considering switching their careers from Wall Street to Silicon Valley. The fast growth, fancy titles and potential upside in equity have made startups an attractive option. However, the transition is never easy given the different nature of two industries. This article will provide insights into how investment bankers can better position themselves and develop transferable skills during MBA to land jobs at promising tech startups after graduation.
Leverage investment banking skills and experience
As an investment banker, you already possess some valuable skills that could be applied in a startup environment. For example, the financial modeling and valuation skills can be handy when startups are raising capital or considering potential M&As. The client communication and presentation skills also make you a competitive business development candidate for startups. When reaching out to startups, highlight these transferable experiences and convince them you can quickly adapt to the fast-paced startup environment.
Obtain hard skills in technology and data analytics
While finance skills are still relevant, you need to develop more hard skills in tech and data analytics to stand out. Take related courses, projects and internships during MBA to familiarize yourself with programming languages, data visualization tools, SQL, Tableau, etc. Some proven abilities in these areas make you more suited for core business roles such as product management and marketing analytics in tech startups.
Network extensively within the startup community
Networking is key to breaking into the startup world as many companies emphasize referrals and value fit. Attend startup career fairs, company information sessions and coffee chats to expand your network. Get warm introductions to hiring managers from alumni and friends working at startups. Join MBA club activities involving the local startup community. By immersing yourself in the ecosystem, you increase the chance of finding the right opportunity.
Target late-stage startups and consider industry choices
When evaluating startups, late-stage companies with Series C funding or beyond tend to be more stable. The business models are validated with sizable revenue and growth. Avoid going to early-stage startups with high risks unless you get sufficient equity upside. Furthermore, research the competitive landscape when picking industries and avoid overcrowded spaces where the No.3 player struggles.
For investment bankers wanting to transition into the startup world, the key is to leverage transferable skills while bridging the knowledge gap through MBA coursework, projects and networking. Avoid risky early-stage startups and consider industry consolidation when targeting companies.