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The purpose of VC funding is not to reach profitability. It’s the reach an “exit” - usually via an acquisition or occasionally via an IPO.

But out of the literally thousands of companies that YC has funded, only about a dozen have gone public and out of those, if you had invested equally when they IPOd, you would have lost about 50% of your investment.

https://medium.com/@kazeemibrahim18/the-post-ipo-performance...

A “success” for a VC company is not a company that ends up being a lifestyle business that muddles along.




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