Stick or twist? How start-up investors know when it’s time to sell

For most founders, the most festive moment in their start-up journey will be the capital raise announcement. Venture capital firms are almost unique in celebrating the buy in, and such investments are often accompanied by gushing praise for the start-up’s founders.

This narrative makes selling down a tricky endeavour, open to misinterpretation that risks eroding that VC’s reputation as a true believer. However, missing the exit window has frequently turned a spectacular start-up gain into catastrophic failure, sometimes in very public circumstances.

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Copyright for syndicated content belongs to the linked Source : Australian Financial Review – https://www.afr.com/technology/stick-or-twist-how-start-up-investors-know-when-it-s-time-to-sell-20240505-p5fp1c