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

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

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New post 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.

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

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New post 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.
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Re: More MBA's are going into Tech & Consulting and Fewer into Banking  [#permalink]

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New post 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.
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Re: More MBA's are going into Tech & Consulting and Fewer into Banking &nbs [#permalink] 19 Jul 2018, 05:22
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