Why 15 years beats 10 years for venture funds
“I I'd love to say that, you know, ten years is enough, but the reality and on most venture capital firms are structured for ten years, but they, of course, have have extensions.”
I I'd love to say that, you know, ten years is enough, but the reality and on most venture capital firms are structured for ten years, but they, of course, have have extensions. It you know, ten isn't, but, fifteen is. You know? So, like, you know, you very typically, what happens in our funds is we have a bunch of early successes that get acquired along the way. By the way, we had four exits in q four, three of them driven by repeat founders, three of them driven by of the four driven by AI tailwinds. These are in companies that were started in '20 in one case, 2015,
About this clip
Jon Callaghan explains why venture funds need longer than the standard 10-year structure to maximize returns. He shares recent exit data showing how AI tailwinds drove three of four Q4 exits, with companies founded as early as 2015 finally reaching liquidity events.
Why this clip
Provides concrete data on fund duration and recent AI-driven exits that validates the need for longer investment horizons.
What they said next
Early stage is all about multiple. The value of a company in those out years when it succeeds, it goes up, up, up, and fast. So your ability to be in early and stay and be part of the value creation process.
28:41 - 43s · Practical Framework
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