4 ms·
Number of years since initial VC investment. After 7-12 years in VCs will want to get their money out to pay out their LPs. Around this time they will start pr
by tristanj 9y ago
Number of years since initial VC investment.
After 7-12 years in VCs will want to get their money out to pay out their LPs. Around this time they will start pressuring management to find a buyer or prepare for an IPO. Though this pressure depends a lot on the company's financial situation and how willing the VCs are to wait for an exit.
It's not the best indicator but it still is one.
- Johnie 9y agoDon't forget about employees. Much of early employee compensation is in the form of equity. After 4 years, people expect to monetize and reap some of the rewards. If there is no exit in sight, the senior employees start making for the exit.