#190 VC Exits Take Time - Will LPs Wait?

Author

Doug Dyer
October 22, 2024

👋 Happy Tuesday folks!

Every Tuesday/Thursday, we publish VC/CFO insights that matter - highlights from notable VC GPs, LPs, and CFOs/finance pros. Don’t miss out; subscribe now (it’s free)!

Love what we’re doing? Consider upgrading to paid for deeper dives on Thursdays (most paid subscribers expense these insights!). Scroll down for more!

Subscribe ✅ l Upgrade 📶 | Templates 📊  | Services 🧑‍💻 | Home Page 🏡

“Optimism is the one quality more associated with success and happiness than any other.”

- Brian Tracy

Picture of the Day: Orionid Meteor Shower

Big VC Exits Take Time - Will LPs Wait?

Michael Jackson & Jason Lemkin shared some good insights on VC exits recently via X (fka Twitter) and LinkedIn.

I’ve shared their posts below but the TLDR is that big exits take time in VC. My question in response right now - will LPs wait?

There’s been a lot of stories about LPs that are tired of waiting right now, with good reason. The VC industry grew too fast, in terms of capital invested ($681b in 2021), number of funds (10k+ at peak), investors (25k+ at peak), and companies (57k+).

In response, LPs are concentrating capital with investors and firms they believe in for the long-term. They have to balance that with also remembering that companies like Canva, Stripe, Databricks, and Gusto take 14+ yrs on average to exit.

Ultimately, the bit VC exits are worth the wait for LPs, but you have to have the right access. Time will tell if LPs are willing to continue to wait with emerging managers. The data says that with some, yes, but with many others, know. We will see!

Michael Jackson on LinkedIn: Big exits take time. Great DPI takes time. Newbie LPs in the asset class… | 115 comments

Big exits take time. Great DPI takes time. Newbie LPs in the asset class often don’t understand this. I still hear a lot of European family offices say they… | 115 comments on LinkedIn

www.linkedin.com/posts/michaeljacksonvc_big-exits-take-time-great-dpi-takes-time-activity-7253682714107637760-9yTD?utm_source=share&utm_medium=member_desktop

Subscribe ✅ l Upgrade 📶 | Templates 📊 | Services 🧑‍💻 | Home Page 🏡

That’s all for today folks! Thanks for your support and spreading the word! 

Share this on Twitter or LinkedIn to help grow “the crew!”