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Even though we’ve covered industry groups vs. product groups and teams such as M&A , ECM , DCM , and Leveraged Finance , we continue to get questions about capital markets vs. investment banking. If this same $1 billion company went public in an IPO, it might sell 10 – 20% of its shares to investors.
This style is about purchasing minority stakes in cash-flow-negative-but-high-growth companies that want to scale and eventually go public or sell (think: Uber or Airbnb before their IPOs). Debt financing is much more common, and the GE firm is often the first institutional investor.
There is some overlap because at the large banks, wealth management clients often get early/privileged access to investment banking products, such as upcoming IPOs, equity/debt offerings, or new investment products. It offers the broadest set of possible exits within the finance industry if you leave early (in your Analyst years).
So, you could mention a related job, such as strategy, finance, or business development at a portfolio company, and say that you want to return to VC at a higher level eventually. Q: Tell me about the current IPO, M&A, and VC funding markets. Q: What are your strengths and weaknesses? A: See our walk-through, guide, and examples.
their Enterprise Values are not worth much for a long time): Hedge funds focusing on public biotech companies step into this process after the IPO part, which means they can bet on extreme value inflections based on binary outcomes. How long will it take for the drug to launch and reach peak sales?
And you don’t want to join a startup because you want a mix of finance, sales, and operations skills – but you normally get “siloed” into just one of those at normal companies. Exits Up Slightly But Still Poor – M&A activity has ticked up modestly, but the IPO market is still mostly shut. Q: Why our firm/group?
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