The company went public 3 years later and Arthur would get back $8.2 Mn – a 130% return or 33% annual return.
It’s this focus on early-stage companies (more risk) that puts the ‘venture’ in VC.
But VC = money + advice on how to build businesses which is more useful to entrepreneurs.
They are ready to invest in a VC fund because of the high returns expected from it compared to other options they have (public equity markets, debt, real estate, etc).
A failure to hit this rate means the fund has failed (and a lot of VC funds fail).
Disclaimer: This story is auto-aggregated & summarized by a computer program and has not been created by StartupAround.
Business loans, credit cards, and lines of credit account for about ¾ of financing for new firms.
Search Startup Around
Boost Your Discovery with Us
Advertise with us to boost your article, content pience, product, event, conference discovery to our readers which includes founders, startup enablers, investors and every key stakeholders from global startup eco-system.