[untog]

While I agree with most of what you said, the one outcome you haven't mentioned is the startup becoming a business. Start off spending VC money while putting together your business model and monetising. Exit your startup 'phase' with all of that in place, and making profit.

[AznHisoka]

One thing I don't get... someone please enlighten me..

If a VC puts money and a startup doesn't get acquired, or goes to an IPO, but becomes profitable, the VC doesn't get anything, right (assuming no dividends)?

So making profit in that sense is still not considered success. So there's some validity to the idea that startups are a game. You're betting on a bigger fool acquiring it, whether it's another company, or the public market. Sort of like buying stocks.

[wtvanhest]

VC's and experienced angel investors use a clause in the funding agreement which can force you to sell. That clause is probably never used in real life but its presence in the world of VC explains itself.

Really it is unlikely that you will create a lifestyle business which is funded with venture money and is one of the things that vcs avoid since it is a failure from their standpoint.

[badclient]

In that case, everything is a game. When I throw money towards a milkshake at McDonalds, I am betting that I will derive some pleasure from consuming it. Sometimes I do, sometimes I don't.

So, everything's a game - with varying odds of winning?

[AznHisoka]

that wasn't the bigger point I was trying to raise. I don't care a penny about semantics and the engrish language.

[bh42222]

If VC money is involved and all that happens is a regularly profitable business, then is not really different from total failure.

To not be a failure you business must be a HUGE success, grow and profit like only startups like Google and Facebook have.