4 ms·

Not really... > Chicago had just 31 total exits during the period, equal to Raleigh. Austin, Texas, had 86; Washington, D.C., saw 87; New York posted 98; and t

• hugs 10y ago
  If your goal is to start an enduring & profitable business, number of exits is the wrong metric. I get annoyed when total number of exits is assumed to be the only metric that counts. It's clearly a metric VCs care about, though.
  • logfromblammo 10y ago
    If you're a founder, not a VC, you would probably want another metric for the rate of return on your sweat from founding to exit. There's a TVM calculation in there, to normalize the dollars you got paid on exit to the years that you did the work. And there's an opportunity cost for not being a salaried employee of an existing business while your were building your new business. In the end, you probably want to reduce it to $X/week, run the calculation for all founders, and then aggregate by metropolitan area to see which city is best. If your business becomes self-sustaining without a buyout, merger, or IPO, you can probably run the calculation using a TVM for a presumed perpetuity after the day you finally start paying regular dividends, along with your equity value as a lump sum. And if it goes bankrupt, you could end up with a negative value if you chose to pay yourself a salary lower than you could have earned elsewhere.