GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 13 Nov 2018, 21:27

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

## Events & Promotions

###### Events & Promotions in November
PrevNext
SuMoTuWeThFrSa
28293031123
45678910
11121314151617
18192021222324
2526272829301
Open Detailed Calendar
• ### 4 Steps to a 5 Star Recommendation

November 14, 2018

November 14, 2018

09:00 AM PST

10:00 AM PST

Nov. 14, 9 AM PST. Donna Bauman, Senior MBA Admissions Counselor and Lisa Cummings, MBA Admissions Counselor at Stratus have read tens of THOUSANDS of MBA recommendations during their time on top MBA admissions committees.
• ### MBA Interview Prep: How to Ace Your Interviews

November 15, 2018

November 15, 2018

10:00 PM MST

11:00 PM MST

Learn the steps you need to take to ace your interviews and get accepted!

# More MBA's are going into Tech & Consulting and Fewer into Banking

 new topic post reply Update application status
Author Message
Founder
Joined: 04 Dec 2002
Posts: 16929
Location: United States (WA)
GMAT 1: 750 Q49 V42
More MBA's are going into Tech & Consulting and Fewer into Banking  [#permalink]

### Show Tags

06 Jun 2018, 12:59
WSJ Posted an article with some numbers
https://www.wsj.com/articles/why-banks- ... 1528277402

Quote:
The share of full-time M.B.A. graduates from the top 10 business schools accepting jobs at financial-services firms dropped between 2012 and 2017 from 36% to 26%, based on a weighted average calculated by the Journal. The share accepting jobs in technology rose from 13% to 20% in the same period. Consulting edged out financial services as the top draw in 2017, as the choice of 29% of grads, up from 27% in 2012.

Quote:
“Over the last 10 years you’ve had an almost complete flip between finance and technology,” said Jean Ann Schulte, director of employer relations and recruiting services at MIT Sloan. She said one factor cited by students is a workweek of 90 to 100 hours that can be typical in the banking industry. “You can have a lucrative career without those lifestyle costs,” Ms. Schulte said.

Attachments

mbas.png [ 1.83 MiB | Viewed 794 times ]

_________________

Founder of GMAT Club

Just starting out with GMAT? Start here...
OG2019 Directory is here! - New!
Verbal OG2019 Directory is here! - New!
Quant OG2019 Directory is here! - New!

Co-author of the GMAT Club tests

Intern
Joined: 02 Jun 2018
Posts: 9
More MBA's are going into Tech & Consulting and Fewer into Banking  [#permalink]

### Show Tags

09 Jun 2018, 14:13
4
I've personally worked in both investment banking and at various high profile startups in Silicon Valley. I think there are definitely pros and cons to both.

From a learning perspective, you can learn a lot in both, just different things. The amount of learning you do in banking is truly like drinking from a fire hose (in a good way). You will become a wiz at financial modeling (very useful skill)), you rub shoulders with C-level execs of public companies as well as promising private companies, and you help them with the most important and strategic transactions for their companies (usually worth millions, if not billions of dollars). At a startup, there is a wider variance in terms of how much you learn. A lot of it depends on the company you join, the team you're on, the boss you work for, and how hard you want to work/how much responsibility you take on.

From a compensation perspective, on average you'll make more money in investment banking. I say ON AVERAGE, because again, there is a high degree of variance in tech. If you join Uber as an early employee, versus some other startup that flames out (the vast majority of them), it makes a huge difference on your financial outcome. The key is - do you know how to identify the winners before they become winners? Easier said than done. I've personally done pretty well in this area. The first startup I joined, my stock options ended up being worth multi-six figures after working there for just 1.5 years. The second startup I joined, my stock options ended up being worth seven figures after working there for just 15 months. The third startup I joined, the outcome is TBD because the company is young and hasn't been sold or gone IPO yet. Certainly some of this is good luck, but I'd like to think a lot of it was also due to the fact that I started my career in investment banking, and then moved into private equity before joining the startups. I say this because 1) having the professional pedigree from Wall Street definitely opened up the doors for me in terms of getting the best companies to be interested in me, and 2) I've learned how to analyze companies from an investor's perspective, and have a good sense of what business models are likely to work vs. not. Living in Silicon Valley now, I know plenty of friends who have worked for multiple startups and never had a good financial outcome. I also have plenty of friends who stayed in investment banking/private equity/hedge funds who are making upwards of \$500k a year. So again, on average, you'll make more money in finance.

From an impact perspective, there's this idea that you'll make a bigger impact working for tech companies. I think this is subjective. As a banker, you help companies with raising capital and advise them on M&A transactions. These are the types of transactions that can make or break a business. Without capital, companies go out of business, and jobs are lost. Talk about making an impact on people's lives? If you work in tech, you can definitely work for a company that makes a highly impactful product (think Google, Facebook, Amazon, Netflix, Uber, Airbnb, the list goes on and on). But you also have to admit, there a TON of startups out there with stupid, pointless ideas. So again, it just depends.

I love tech, working in tech has changed my life. But if I could go back and do it all over again, I would still start my career on Wall Street, and then decide if moving over to tech is the right move for me. The exit opportunities from banking will always be available to me, and the world is my oyster.

If anyone has questions on either investment banking or tech, feel free to ask.
Intern
Joined: 13 Mar 2018
Posts: 7
Re: More MBA's are going into Tech & Consulting and Fewer into Banking  [#permalink]

### Show Tags

19 Jul 2018, 05:22
pgs wrote:
I've personally worked in both investment banking and at various high profile startups in Silicon Valley. I think there are definitely pros and cons to both.

From a learning perspective, you can learn a lot in both, just different things. The amount of learning you do in banking is truly like drinking from a fire hose (in a good way). You will become a wiz at financial modeling (very useful skill)), you rub shoulders with C-level execs of public companies as well as promising private companies, and you help them with the most important and strategic transactions for their companies (usually worth millions, if not billions of dollars). At a startup, there is a wider variance in terms of how much you learn. A lot of it depends on the company you join, the team you're on, the boss you work for, and how hard you want to work/how much responsibility you take on.

From a compensation perspective, on average you'll make more money in investment banking. I say ON AVERAGE, because again, there is a high degree of variance in tech. If you join Uber as an early employee, versus some other startup that flames out (the vast majority of them), it makes a huge difference on your financial outcome. The key is - do you know how to identify the winners before they become winners? Easier said than done. I've personally done pretty well in this area. The first startup I joined, my stock options ended up being worth multi-six figures after working there for just 1.5 years. The second startup I joined, my stock options ended up being worth seven figures after working there for just 15 months. The third startup I joined, the outcome is TBD because the company is young and hasn't been sold or gone IPO yet. Certainly some of this is good luck, but I'd like to think a lot of it was also due to the fact that I started my career in investment banking, and then moved into private equity before joining the startups. I say this because 1) having the professional pedigree from Wall Street definitely opened up the doors for me in terms of getting the best companies to be interested in me, and 2) I've learned how to analyze companies from an investor's perspective, and have a good sense of what business models are likely to work vs. not. Living in Silicon Valley now, I know plenty of friends who have worked for multiple startups and never had a good financial outcome. I also have plenty of friends who stayed in investment banking/private equity/hedge funds who are making upwards of \$500k a year. So again, on average, you'll make more money in finance.

From an impact perspective, there's this idea that you'll make a bigger impact working for tech companies. I think this is subjective. As a banker, you help companies with raising capital and advise them on M&A transactions. These are the types of transactions that can make or break a business. Without capital, companies go out of business, and jobs are lost. Talk about making an impact on people's lives? If you work in tech, you can definitely work for a company that makes a highly impactful product (think Google, Facebook, Amazon, Netflix, Uber, Airbnb, the list goes on and on). But you also have to admit, there a TON of startups out there with stupid, pointless ideas. So again, it just depends.

I love tech, working in tech has changed my life. But if I could go back and do it all over again, I would still start my career on Wall Street, and then decide if moving over to tech is the right move for me. The exit opportunities from banking will always be available to me, and the world is my oyster.

If anyone has questions on either investment banking or tech, feel free to ask.

That's quite an impressive feat.
Having this much success right from the start of your career is something really impressive. The uncertainity is quite scary in the share market.
There are not many companies going public now either. Funding is becoming easier for start-ups these days too.
I have started investing in the stock market recently and I already can feel how difficult it is now.
Re: More MBA's are going into Tech & Consulting and Fewer into Banking &nbs [#permalink] 19 Jul 2018, 05:22
Display posts from previous: Sort by

# More MBA's are going into Tech & Consulting and Fewer into Banking

 new topic post reply Update application status

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.