Hacker News new | ask | show | jobs
by mrnobody_67 2193 days ago
Sounds like a good outcome.

VCs need to have a chance of "returning the fund". If they are investing out of a $200m fund, and they own 15% of your company at exit after 5 years and subsequent dilution, that 15% has to have a chance of being worth $200m.

Otherwise the math does't work.

1 comments

The math works out because a fund is investing in multiple companies.