VC's can't "flip" a company for $100M unless that company is actually valued at $100M. VCs invest in a team and an idea that they believe will build that compa

VC's can't "flip" a company for $100M unless that company is actually valued at $100M. VCs invest in a team and an idea that they believe will build that company. This is why they are productive (as opposed to bitcoin). The way companies are valued, in general, is by their discounted cash flow. That is the only way you can sell a company for $100M is if you convince someone that company's business will earn at least $100M in present value (typically a lot more). This is exactly the difference between investment and speculation. EDIT: VC's don't need someone to pay more. They need a good business. It's true they're generally interested in selling those businesses but they might stay an owner for a very long time if it's a great business. It's not the other people who pay their money that makes VC's money, it's the business creating value. As to their motivation, of course it is partly to make more money through investment, but they don't rely on a bigger fool to succeed.