Exits are the key to a successful startup ecosystem. Scarce exits at low valuations means scarce venture capital, and less enthusiasm among potential employees

Exits are the key to a successful startup ecosystem. Scarce exits at low valuations means scarce venture capital, and less enthusiasm among potential employees and even founders. Silicon Valley is dense with natural acquirers. China has a market for exits. Other aspiring startups hubs around the world just do not. I realized this from spending time in Tokyo and Singapore. People commonly think "everything would be different if we just had a few more VCs", or some such. But really, it's not complicated. Investors want exits, and when they dream, they dream of big exits. They're not in the business to lend a helping hand, or reward the deserving.