Those with technology backgrounds want to understand the technology. Management-oriented VCs want to spend time with key staffers. Overall, venture capitalists focus more on market, technology and people than on pure numbers. Venture capitalists have unrealistic performance expectations. Our limited partners are making high-risk investments and expect high rewards.
Limited partners expect a return on their investment in the form of cash or securities.
Without an exit strategy, there is no return to investors. Venture capitalists give me a lower valuation than a private placement . Venture capitalists, especially early-stage investors, spend significant time with entrepreneurs. In contrast, private investors tend to be less involved and offer less value in the long run. Venture capitalists won't invest in small deals.