Final Remarks
- Not every company can grow quickly enough to generate Venture-Scale returns. A VC should only invest in the companies with that potential.
- The fund size determines what a meaningful exit is.
- Some investors aim only at potential home-run exits. Others don’t. Both strategies have been proven successful over time.
- Use your gross margin and growth rate to determine the multiple you get in an exit.
- Compare the growth rates required to hit that target given your current level. Compare those rates to those of the most successful companies.
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