Varun Agarwal, a 25-year-old investment banking analyst, has left his position at JPMorgan to join OffDeal, a startup that describes itself as an AI native investment bank. Agarwal's move signals a growing trend of finance professionals transitioning from established institutions to technology-focused firms that promise to automate and accelerate traditional banking processes.
Key Takeaways
- Varun Agarwal, a former analyst at JPMorgan and Piper Sandler, joined the AI investment bank OffDeal as a founding employee.
- OffDeal uses AI and proprietary software to drastically reduce the time needed for tasks like company valuations, cutting the process from weeks to just one or two days.
- The firm operates with two-person deal teams, consisting of one banker and one engineer, who share in the revenue from completed transactions.
- Agarwal reports handling 10 to 11 deals simultaneously at OffDeal, compared to two or three at JPMorgan, due to AI-driven efficiencies.
A Departure from Wall Street Norms
For many finance graduates, a position at a bulge bracket investment bank like JPMorgan is a primary career goal. These roles offer high compensation and direct experience working with executives from major public companies. Varun Agarwal followed this path for three years, first at Piper Sandler and later at JPMorgan, both based in the San Francisco Bay Area.
During his time in traditional investment banking, Agarwal developed skills in financial modeling and business evaluation. He noted that the experience taught him how to manage a wide range of tasks efficiently and sharpened his judgment in making investment decisions. However, his proximity to Silicon Valley exposed him to a different career model.
"Seeing 21-year-olds start companies and raise millions of dollars was exhilarating," Agarwal stated, reflecting on the startup culture. This environment prompted him to reconsider his career trajectory and explore opportunities that involved greater risk and entrepreneurial spirit.
The Traditional Path vs. Tech Startups
Investment banking has long been considered a prestigious and secure career path for finance graduates. It is known for its demanding hours but also for providing a strong foundation in financial analysis and corporate strategy. In contrast, joining a tech startup is often seen as a higher-risk, higher-reward alternative that offers more direct impact and ownership.
Discovering a New Model in Finance
Agarwal's transition began after he came across a LinkedIn post by Ori Eldarov, the founder of OffDeal. He was drawn to the company's mission of using artificial intelligence and software to address the specific inefficiencies he had personally experienced as a junior banker.
A key factor in his decision was OffDeal's focus on small businesses. Agarwal had a personal connection to this market, as his mother owns a dental practice. He observed that many business brokers handling transactions for smaller companies often lacked the resources to conduct a comprehensive, Wall Street-level process. OffDeal aimed to fill this gap using technology.
"I was drawn to OffDeal's mission and its use of AI and software to address the exact pain points I faced as a junior banker at JPMorgan."
After considering the potential of AI to reshape the finance industry, Agarwal decided to take what he described as a "calculated risk" and join OffDeal as a founding employee, leaving the stability of JPMorgan behind.
How AI Changes the Investment Banking Workflow
At OffDeal, the operational structure is fundamentally different from that of traditional banks. Each transaction is managed by a compact, two-person team: one banker and one software engineer. Agarwal works directly with the firm's founding software engineer, Luis Ruiz Morel. This model ensures that technology is integrated into every step of the deal-making process.
Drastic Gains in Efficiency
The impact of AI on daily tasks is significant. According to Agarwal, processes that once took weeks or months are now completed in a fraction of the time.
- Company Valuations: At a large bank, a detailed company valuation could take weeks. At OffDeal, using proprietary software, it takes one to two days.
- Financial Modeling: Manual data entry into Excel spreadsheets has been replaced by software-driven analysis.
- Meeting Notes: AI tools automatically transcribe Zoom calls, eliminating the need for manual note-taking during client meetings.
- Pitchbook Creation: Revisions to pitchbooks, which previously required extensive back-and-forth communication, are now handled by an AI agent that makes changes automatically.
Productivity Comparison
At JPMorgan, Agarwal typically worked on 2 to 3 live deals at any given time. At OffDeal, he manages 10 to 11 deals simultaneously. This increase is attributed directly to the time saved by automating administrative and analytical tasks.
This enhanced efficiency allows bankers to focus more on client-facing activities, such as meeting with prospective buyers and sellers. The structure also provides direct financial incentives, as both the banker and the engineer on a deal team receive a percentage of the transaction's revenue.
The Future of Finance Careers
While Agarwal acknowledges that traditional investment banking remains a valuable career starting point, he believes the risk associated with joining an AI-focused company has diminished. He argues that the influence of artificial intelligence on every industry is becoming undeniable.
"It is becoming increasingly clear that AI will have a huge impact on our lives," he said. "There's a very small window of time where you can actually succeed and push your career forward in AI before it becomes a more mature industry."
He advises that developing skills in how to apply AI within a professional workflow will provide significant career advantages in the coming years. For Agarwal, the move to OffDeal was not just about joining a startup but about positioning himself at the forefront of a technological shift that is set to redefine the financial services industry.