I realize it's a loaded title - the question isn't nearly as controversial. I'm looking to understand why bankers exit to VC, whether they hope to have long careers or are just looking for a way to break into startups, and whether any of them ever wind up getting carry. I understand VC funds as split up by stage, with bankers typically ending up at growth/late stage firms (Andrew Reed in Sequoia's Growth arm, for example). Are these people ever able to stick around long enough at large funds (Sequoia/Accel/Kleiner/a16z) to get carry? Or do they just spend a few years and then head off to a startup/FAANG/etc?
Obviously VC pays less, but for many, that's a small price to pay for a better lifestyle and a really cool job. But my question is: why make the exit if there's no future for you in VC? Aren't VC partners typically former founders/early employees/operators? Where do bankers fit into this puzzle?
You largely answered the question yourself based on my own experience. I have quite a few friends who did 2-3 years in IB before switching over to VC for a "more chill / laid back" couple of years as associates while they figured out their next steps. The Associate -> Partner path is possible but certainly not probably which is why you see so many of these people jump over to operator roles after a year or two. Certainly exceptions to every rule but that's mostly the norm - build solid relationships with top founders and then join them for the next chapter of your journey. You'll most likely come out with some awesome operating experience (assuming you had great inside info and picked an up and coming rocketship) and be ready for the next step of your career, whether that be more investing or creating something yourself.
Or you can be one of those people who stick around at the IB for a few years too long before turning into the dickhead MD who complains about their coffee order and does way too much coke. I'm biased of course based on this comment alone, but building or investing long term is much more fulfilling in my eyes.
edited above. How does one delete an extra comment on WSO?
Appreciate it. So did your friends wind up jumping into PM-type roles w/ startups they invested in as VC associates? Trying to understand where a banker best fits at a startup at that stage.
Yeah a few have doubled down on pushing for partner track while others moved to product, strategy, and chief of staff type roles.
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