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Someone has explained it here a couple of years ago that VCs generally view them as failures as they have investment pools with lifetimes of 7-10 years and each
by DrJokepu 13y ago
Someone has explained it here a couple of years ago that VCs generally view them as failures as they have investment pools with lifetimes of 7-10 years and each pool is expected to yield something like a 10x profit at the end of the period. There's not much difference between losing their original investment and getting it back as they will have similar effects on the performance figures of the pool at the end of the cycle.
- tomkarlo 13y agoDepending on whether a fund is still in its reinvestment period, they may also not be able to put that money to work - it may automatically go back to the LPs, who aren't generally very happy to just get their money back when they're expecting 25% or higher IRRs.