Your VC Needs A Billion Dollar Exit. You Do Not.

Crunshbase published this excellent article “Your VC Needs A Billion Dollar Exit. You Do Not.“

Some key quotes for me:

  • “The economics of many VC funds require billion dollar exits. The economics of founders’ lives do not, so don’t let your investor’s business model drive irrational behavior in fundraising, spending, or selling. Remember that selling a company for $30 million can sometimes lead to better returns for the founder than selling for 10X as much.”

  • “Before going out to raise more money, founders and investors should have ‘the talk.’ Is it time to sell?”

  • “Instead of thinking of an acquisition in terms of dollars, think of it in terms of years. How many years would it take you to grow into the valuation being offered or solicited?”

Read the full article here.

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Hat tip to Seraf