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In order to raise Fund N+1, a VC firm needs successful exits from Fund N. I had a startup whose exit timing was driven by our investors needing a successful exi
by greglindahl 10y ago
In order to raise Fund N+1, a VC firm needs successful exits from Fund N. I had a startup whose exit timing was driven by our investors needing a successful exit so they could raise. A longer-lived fund would not have changed the timing.
- mason55 10y agoTheoretically you could try to shift it so that fund N was based on the exits from fund N-2. That way you don't have to the cohort in N-1 to exit so fast. The only difficulty would be the first couple funds where you'd have to push group 1 to exit so you could raise fund 2, then try to raise fund 3 on the exits of fund 1 plus the growth (but not exits) of fund 2.
- greglindahl 10y agoThe investors in question had raised many funds. I suspect their LPs were more interested in "what have you done for me lately" than anything about Fund N-2.