WHY SMART VCS LOVE ILLIQUIDITY OVER QUICK PROFITS?

WHY SMART VCS LOVE ILLIQUIDITY OVER QUICK PROFITS?

#1?WHY SMART VCS LOVE ILLIQUIDITY OVER QUICK PROFITS?

What if the real power of venture capital isn’t in spotting the next big success, but in something surprising — its illiquidity? The state where VCs are not able to cash out quickly which might seem like a drawback, but in reality, it’s one of their biggest strengths. A longer investment period gives startups the time they need to fine-tune their ideas and grow at a steady pace. VCs typically expect to see 10 times their investment return in over five to seven years.

#2?EMERGING VC MANAGERS: A FAMILY OFFICE PERSPECTIVE

Traditionally, family offices have only considered emerging VC managers when unable to access established, big-name VCs. Yet, there is a shift in interest. More sophisticated families are now intentionally allocating capital to emerging managers, even when they can invest in larger, well-known VCs. One possible reason for this change is the evolution of established VCs into larger entities, which often results in returns more akin to private equity.?

#3?IT’S NEVER TOO EARLY FOR STARTUPS TO THINK ABOUT FINANCIAL MATURITY

Every startup has its own unique story, but those stories often follow a similar trajectory: A small group of founders have a good idea for a product, which they build in their spare time (bonus points if they build it in someone’s garage). From there, they attract their first seed investments and build towards Series A, Series B, and so on. As the startup grows larger, the founders may start thinking about their exit strategy—an acquisition or an IPO.

#4?SPACEX DEAL WOULD BOOST THE VALUE OF ELON MUSK'S COMPANY TO $350B

The boost in valuation would be another major gain for Musk, whose net worth has reached record highs since Donald Trump was elected president last month. Musk is set to work closely with the Trump administration as the co-leader of the Department of Government Efficiency, an advisory committee also known as DOGE. Sources told Bloomberg the latest deal was still being discussed and that it could change.

#5?EASY STEPS TO MAKE YOUR STARTUP ATTRACTIVE TO TOP TALENT

For startups, attracting top talent is essential to growth and success. Competing with larger companies that offer higher salaries and extensive benefits can be daunting, but startups have unique advantages that make them appealing to ambitious and talented professionals. A well-defined mission can be one of your startup’s most powerful tools for attracting top talent. Many professionals prefer to work for companies that align with their values.

If you enjoyed this newsletter, feel free to share it with a friend! Are you a startup founder from Europe or Israel seeking financing??

Whether you're in Seed, Series A, or later, contact us!

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