Why VCs Often Turn Away Promising Investments
True story: My VC firm just had a fantastic meeting with a potential investment. The company is in a sector we target; it has strong growth potential and a seasoned management team. Yet the meeting ended with us turning them down.
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In VC speak, the reason behind the rejection went like this: "Our second fund's vintage necessitated a later-stage investment with liquidity prospects that better matched the LP-contractual investment and harvest period."
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