alt Hacker NewsMy LPs want liquidity now, always. 2021 was hot and it’s been relatively quiet since. Mega funds are keeping companies private longer. Capital is tied up which hurts emerging managers trying to raise. My LPs want returns in 6 years which only works if everything goes perfectly which almost never happens; that’s how long $100M+ rev takes if you triple yearly. IPO requires more rev than before, everything’s larger.
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LunaSea • yesterday at 4:03 PM
Would smaller ventures not be an option? Say investing 500k$ and selling for 10M roughly 5 or 6 years later?
I would imagine that building these smaller companies looking for smaller exists would be easier and more predictable.
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6 years?
As an LP, I would be excited for liquidity in 10 years at this point.
It seems like even for successful companies, there isn't a clear path to an exit for many of them. Add to that the increase in late-stage investors, and there isn't much of an incentive to exit.