VCs don't always want your startup to get acquired - here's why

VCs do not always want an acquisition to happen because oftentimes, it's not in the best interest of a VC.

36:37 / 37:07

VCs do not always want an acquisition to happen because oftentimes, it's not in the best interest of a VC. They would rather go go for the moonshot of an IPO or whatever Agree. Than they would sell out in their terms because that would give them a a lower, outcome. And that, of course, is a major problem or something to manage as a founder that that you're used to being able to rely on your VCs a lot. You're used to sparring with them on a lot of things.

About this clip

Sacha Michaud reveals a critical founder insight about VC incentives during exits. He explains how VCs often prefer to swing for IPOs rather than acquisitions because it delivers better returns for their funds, creating potential misalignment with founders who might benefit from earlier exit opportunities.

Why this clip

This challenges the common assumption that VCs and founders are always aligned on exit decisions, revealing important structural conflicts in the relationship.

36:37 - 37:0730scontrarian take

Share

LinkedInX

What they said next

Why consumers only care about one or two things in your product

13:00 - 19s · tactical advice

More from this episode

Similar clips from other shows

From the blog

Want clips like this for your podcast?

We find your top 5-8 clips, write the hooks, and deliver ready-to-post content. First 2 episodes are free.

Get 2 Episodes Clipped Free