My previous post was about how it takes about a decade longer to exit in companies with venture capital investors.
That’s much longer than most entrepreneurs and angel investors would guess.
Most VC funds are designed for ten year lifetimes. In actual practice, it takes significantly longer to actually exit the investments and shut down the typical IT VC fund.
The actual distribution of VC fund lifetimes is show in the graphic below.
The rest of this post explains why entrepreneurs often scare off angel investors by saying they are planning on a VC round.