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.”
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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.
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