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Sajin
•

Foundation • 23h

VCs are backbone of startups. How much do you know them? Here are my few insights: 1. VCs invest funds raised from Limited Partners, and accountable to generate them returns in 10 years 2. VCs earn 2% management fee annually from the fund, performance regardless 3. VCs often reserve 50%+ of fund to reinvest winners in later rounds 4. VC model relies on 1-2 unicorns and few late stage exits 5. Expected returns from a startup: 7(+3) years 6. VCs often neglect longterm opportunities due to quicker exits pressure, regardless of profitability or innovation 7. For deal sourcing, VCs rely heavily on networks 8. Branding/PR > consistent returns to attract LP investments for future funds 9. VCs often release funds in tranches 10. VCs push for exits to align fund timelines, regardless of startup maturity For more, Adithya Pappala made an amazing VC series on Medial, check them. As founders, do you find VCs are approachable, or are startups forced to chase clout to win their favor?

16 replies12 likes

Replies (16)

Anonymous 3

Stealth • 18h

Good sheet

1 replies1 like

Anonymous 2

Stealth • 20h

Bro VCs being approachable depends on your clout

1 replies1 like

Anonymous 1

Stealth • 21h

VCs are like gamblers with someone else’s money

1 replies1 like

Mr Z
•

Medial • 23h

Chasing quick exits and unicorns isn't how you build world-changing companies. Real innovation needs patience, not spreadsheets.

2 replies1 like

SHIV DIXIT

Stealth • 23h

good read

1 replies1 like

Adithya Pappala

Stealth • 23h

Insights are Spot-On 🔥 Also add VC'S don't look at messages with Short Words or Acronyms Such as " Do u like to invest in my startup? or so on Build & Ask but kindly don't request. Anyways, I am happy to assist any founders. Thanks for mentioning it.

2 replies1 like

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