You raise some really good points. In my personal and investment perspective in startups, I always caution founders to consider the nature of their investors (angels, VC, and PE firms). Each has their own "closed end" view of their investments. 8-10 year funds, and perhaps you got invested in year 4 or 5 which leaves just a few years before they expect their payday. This is often COUNTER-Strategic to the companies. Or, if other companies in the investors portfolio aren't doing well, there is even more pressure on the company to yield that XX return. I wonder if the analogy of a VC could be drawn to Pre-schools. They only see you through early years but never stick around when you are in your formative ones?
Steve,
You raise some really good points. In my personal and investment perspective in startups, I always caution founders to consider the nature of their investors (angels, VC, and PE firms). Each has their own "closed end" view of their investments. 8-10 year funds, and perhaps you got invested in year 4 or 5 which leaves just a few years before they expect their payday. This is often COUNTER-Strategic to the companies. Or, if other companies in the investors portfolio aren't doing well, there is even more pressure on the company to yield that XX return. I wonder if the analogy of a VC could be drawn to Pre-schools. They only see you through early years but never stick around when you are in your formative ones?