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Sometimes investors have no interest in anything but a large exit. So it's large exit or bust. Building something stable that grows at a reasonable pace is cons
by api 3y ago
Sometimes investors have no interest in anything but a large exit. So it's large exit or bust. Building something stable that grows at a reasonable pace is considered the worst outcome because it both consumes investors time/energy and delays closure of a fund. They're left holding shares that are illiquid.
It's perverse of course but it can be something baked into the structure of how VCs and other funds work.
- NavinF 3y ago> They're left holding shares that are illiquid More specifically, how much is a SAFE for 7% of a small business worth? If there are no liquidity events it will be impossible for investors to even get their money back let alone outperform SPX