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VCs don’t rely too heavily on this. In fact, taking a early buy out is one of the outcomes that can be very good for a founder but terrible for a VC. VCs need o
by tschwimmer 6y ago
VCs don’t rely too heavily on this. In fact, taking a early buy out is one of the outcomes that can be very good for a founder but terrible for a VC. VCs need outsize returns to boost the market overall portfolio, which has many zero outcomes. Getting acquired for 110% of your series A valuation doesn’t do anything for them.
That said, getting acquired as a strategic acquisition is a good outcome for VCs. However that’s much more rare and isn’t specific to big tech companies.