3 ms·
I'd suspect it helps do 2 things - marginal VCs die sooner. This is already happening but more competition for deals hurts VCs who don't bring a lot to the tab
by asanwal 13y ago
I'd suspect it helps do 2 things
- marginal VCs die sooner. This is already happening but more competition for deals hurts VCs who don't bring a lot to the table. This either brings in new smarter blood or right sizes the industry.
- can allow for a set of investors whose criteria for success is more in line with reality. A $100M exit doesn't get most VCs excited but angels and syndicates of angels prob love those. And 60% of tech M&A exits last year were less than $100M.(1)
(1) http://www.cbinsights.com/blog/acquisitions/tech-mergers-acquisitions-deals-2012-report http://www.cbinsights.com/blog/acquisitions/tech-mergers-acq...
- 7Figures2Commas 13y ago> A $100M exit doesn't get most VCs excited but angels and syndicates of angels prob love those. Sure, I could see an angel who put $50,000 into a $250,000 seed round for a company at a $2 million pre-money valuation being happy about a $100 million exit if said company never raises additional capital, but I'd be interested in knowing a) how typical this type of scenario is and b) what the overall returns are, on average, for angels actively making these kinds of investments.