AXIOS April 24, 2024
Dear venture capitalists,
I’ve been covering your industry for over two decades, through booms and busts and back again. If there is to be another two decades, you’d better change your behavior. And quick.
The basic VC model is cyclical. Raise money, invest that money, exit via IPOs or strategic sales, and then use those exits to raise more money.
- Get chubby on fees, fatter on carry, and then gleefully obese the more times you rinse and repeat.
But it doesn’t work if you stop exiting companies.
- Limited partners are in this for the coin too, and for years have been stuck in a liquidity drought of your making.
- VCs let startups stay private longer, often well...
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