Will VCs who invested in my startup be happy to exit with a 4-5x return after 4.5 years?
SaaStr
DECEMBER 23, 2019
Q: Will VCs who invested in my startup be happy to exit with a 4-5x return after 4.5 years? It’s hard to say. On average, VCs are looking for the entire portfolio to do about 2.5x “gross” (before fees). They want to do much better, of course. But 2.5x is usually enough to raise another fund, make some money, and fight another day. So why isn’t 4x-5x good enough on any individual investment?
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