Exit Timing

3 clips

The Full Ratchet

Why 15 years beats 10 years for venture funds

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.

30:26 - 31:0337s

fund-structure exit-timing ai-tailwinds

Venture Unlocked

market insight

PE-like duration with venture-like IRR but high cyclicality creates exit challenges

A discussion of investment strategies that combine private equity duration with venture capital returns, but face significant cyclical risks. The speaker explores how the real challenge isn't finding growth opportunities but timing exits effectively, leading to questions about secondary markets and continuity funds as solutions for scaling entries and exits.

22:30 - 23:0535s

exit-timing irr-analysis secondary-markets

The Full Ratchet

personal lesson

Investor admits he'd make the same costly mistake again

A venture capitalist reflects on missing out on what could have been the best private acquisition in VC history in 2021, explaining why his people-first investment philosophy means he'll likely repeat similar mistakes. He discusses the tension between maximizing returns and supporting entrepreneurs' decisions, even when it costs millions.

4:39 - 5:1838s

exit-timing investor-philosophy people-first-investing