Comment on Indie.vc: Unicorns Are Out, Profits Are InparentComments−mrnobody_676ySounds 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.−imtringued6yThe math works out because a fund is investing in multiple companies.
Comments
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.
The math works out because a fund is investing in multiple companies.