I know the word you are thinking of. But, actually, the word is ‘exit.’
Many have tried to explain venture capital (VC).
For entrepreneurs, VC is hope in a check. They hope that VCs like their idea (hence the fascination with Shark Tank) and hope that VCs will fund them, guide them and make them rich. Unfortunately, these hopes are misplaced most of the time. As I have noted before:
- VCs invest in 100/100,000 ventures and fail on 80
- VCs invest after Aha, when potential is evident. Pre-Aha, entrepreneurs are on their own 20
- VCs are said to account for about 95% of VC profits. Your odds of getting VC from this small list are next to nil. And the odds of becoming wealthy are even smaller as the average failure rate is 80% for VC-funded ventures and only 1% are home runs.
