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by swalkergibson 4602 days ago
I really cannot fathom any investor that would not be absolutely ecstatic over a $3B exit for a product like this. Would any VCs care to comment on this specifically?
1 comments

Therin lies the problem. That is the fundamental conflict between the diversified vc and the concentrated entrepreneur. It is not a secret, in fact a lot of good VCs want entrepreneurs to have a very clear understanding of what the end goal is.

Mendelson touches on this in a post: http://www.jasonmendelson.com/wp/archives/2013/06/the-vc-bar...

I think you are perhaps conflating returns on the fund as a whole vis-a-vis returns on an investment by investment basis. The goal of a VC, as I understand it, is to only invest in companies that can provide 10x returns, providing that one of those investments does return 10x, one returns 2x, three break-even, and five are outright failures. If a VC owns 10% of a company that exits for $3B, then the VC gets $300M, which returns 75% of the total fund. I very seriously doubt any VC firm would have stopped this transaction.