Recently got looped into a conversation about a start-up in a little bit of trouble. Another fund (the lead) was spending a lot of time with it. Question came up: has the fund had any big exits yet? (Do they need this one to do well?)
Never thought much about this -- that a fund really really would like a few big early exits (because that helps raise the following funds, and a variety of other reasons). Incentives can get misaligned with start-up founders (or the success of the company). Weird behavioral quirk you don't think of if you're not at the table.
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