It doesn’t have to be boom or bust

As mentioned before, VCs are looking to fund companies that can capture huge markets. As a result, they’re not interested in building businesses that can comfortably sustain founders and employees.

If they can’t get an exit that contributes to their returns in a set period of time, then it is a failure. Period.

As a result, VCs would prefer for a startup to go bust early if it doesn’t have a chance to become a big winner. This way they can focus their attention on the startups that do have a chance of making them money.