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That might be part of it, but also VCs are not interested in $100 mil exits, they rather you go all out and either capture the market or die trying.
by xuki 4y ago
That might be part of it, but also VCs are not interested in $100 mil exits, they rather you go all out and either capture the market or die trying.
- lozenge 4y agoHave they not heard of the mythical man month?
- hef19898 4y agoI always wonder how much of the faibled 99% start-up failures are up to that attitude. Imagine to settle for 100 million exit, at maybe 2x, more often. Couldn't it be tgat VCs would ve more profitable? Serious question, bevause VCs are professionals in what they do and they definitely have a reason. A reason that totally eludes me.
- mstipetic 4y agoI always thought Uber could be a nice billion plus business modernizing the taxi business and providing software to run it, but no, they had to grow so much to legally fight whole countries and upset regulations
- aaronsimpson 4y agoI always have to adjust for this as an early-career engineer aspiring to start my own startup. It's insanely intimidating looking at companies with multi-million or billion-dollar valuations, but my definition of a "successful" company is probably vastly different than what most hyper-growth VCs are looking for. I'm always more interested in the low-fixed-cost software businesses like Sublime Text, Pinboard, or Hwaci (SQLite)
- kooshball 4y agothe answer is no probably not. VC for tech startup exist because of economy of scale of tech and is ruled by power law. one winner that returns 100x is much more important than a handful that return 2x. to be clear most VC funds are not actually able to do that.
- jjeaff 4y agoThey would have to adjust their strategy and be more selective in the companies they invest in. And they of course know that they aren't actually very good at picking winners, so that strategy is out.