Venture Capital Exit Times and Return on Investment (ROI)

• http://www.angelblog.net/Venture_Capital_Exit_Times.html

Two previous posts: Venture Capital Firms are Too Big and Venture Capital Funds – How the Math Works, described how venture capital investors will want to invest too much and exit only for very high returns.
Why are those bad things for entrepreneurs and angel investors?

Well, it turns out those can be extremely bad. These VC tenancies mean that:

1. Venture capital exit times are extremely long – much longer than you probably realize

2. The risks of actually achieving an exit decrease dramatically

This post describes why these factors make venture capital exit times so long.

Time Required to Generate 10x to 30x Returns

If the successful venture capital investments need to return 30x on average, or at the very least 10x, to generate a minimum VC fund return of 20% per year, how does that affect venture capital exit times?

• http://www.angelblog.net/Venture_Capital_Exit_Times.html