Exit Junkies: When Equity Stifles Innovation

Startups and venture investors share a problem; “exit dependence.”  Equity investors can’t sustainably invest in startups without exits, because exits are how those investors get paid.  They must be able to sell their equity (i.e. stock) at a higher value through a merger/acquisition or IPO.  No exit, no returns.  There must be a “liquidation event.”  Startup funding is hooked on exits. Read more of this post