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Why VCs should take 3x returns instead of waiting for 5x

The Full Ratchet · Investor Stories 457: Lessons for Early Career VCs:...

“They wanna get excited about finding the next Google on Meta.”

2:20 / 2:54

think about the myth of venture capital. They wanna get excited about finding the next Google on Meta. Those are extremely rare. Extremely rare. And so part of your job as a good fiduciary is working a company, putting your effort in, helping a founder, but at the right time, if you have the opportunity to get liquidity, you should think less about, is this it could be a five x if I wait. It's only a three x now and just realize that your LPs value liquidity. And so if you have a portfolio, not everything is gonna work. And if you have some sort of profit positive gain and you have an opportunity for early liquidity,

About this clip

A VC explains why early-career investors should prioritize liquidity over holding out for maximum returns. The speaker argues that LPs value actual liquidity more than theoretical upside, and that fiduciary duty means taking profitable exits when available rather than chasing the rare Google-sized outcomes.

Why this clip

This directly contradicts the common VC narrative of always swinging for massive returns and provides actionable guidance on exit timing.

2:20 - 2:5434stactical advice
liquidity-strategyfiduciary-dutyportfolio-management

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Provides tactical investment advice with specific questions to ask. The tension between passion and practical exit planning is relatable, and the public markets framing adds sophistication.

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