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VC are middlemen. Their job is to funnel money from their upstream investors e.g. hedge funds, superannuation etc into startups that they believe will make mone

VC are middlemen. Their job is to funnel money from their upstream investors e.g. hedge funds, superannuation etc into startups that they believe will make money. The timeframe for this process is basically a decade. So a startup has a decade to take money, do something and then return the money. It's why startups are being held to the T2D3 growth benchmark. They need things wrapped up pretty quick. So if you are a startup wanting to build a long term business then the VC track probably isn't for you unless you are willing to either (a) get acquired or (b) IPO. There really does need to be more revenue sharing VC options as this is the only way to support the type of long term, sustainable businesses we really need.

simonebrunozzi 6y ago
Not necessarily (although you are kind of right to a good extent). There are other types of investors that will happily take the 10-year old investment and ride with it for another number of years. Usually they do it by discounting the value, and thus making money that way. (not good for founders, employees, or early investors other than VCs with good clauses in their investment contracts).