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A $500M exit is "completely unexciting" to institutional VCs. Sheel Mohnot breaks down the economics behind why, and it changes everything about how founders should think about fundraising. His fund: $140M Their minimum exciting exit: $500M+ Fund math is unforgiving. To return 3x to LPs, they need their winners...

40,649 次观看 • 8 个月前 •via X (Twitter)

16 条评论

Dave McClure 的头像
Dave McClure7 个月前

founders shouldn’t build businesses according to VC math — they should build based on their customer & market opportunity. what VCs need for good fund performance != always good startup advice. (also Sheel is wrong about #LatAm startups — #MercadoLibre & #Nubank are huge)

Francis Santora 🎌 的头像
Francis Santora 🎌7 个月前

What about Nubank?

Chinmay A. Singh 的头像
Chinmay A. Singh7 个月前

This has been my point with YC and other VCs. When they say "growth matters", they dont say for whom? Customer, Investor, or Founder? If you remove VC from the equation, profitability matters for both the customers and founders. A founder can meaningfully change his life with $5M exit as long as the founder owns 50% company.

Gregor 的头像
Gregor7 个月前

I've seen VCs like Sheel's have a tough time justifying their own returns, let alone their fund's reputation, when exits don't hit those massive targets. This mentality creates a self-fulfilling cycle where VCs prioritize high-risk, high-reward investments over more sustainable ones.

Rafael Costa 的头像
Rafael Costa7 个月前

There will be and there are multiple billion dollar companies built serving Brazil only and/or latam. Some financial profiles down there are hard to come by in the US. I’m talking 100M+ EBITDA company, growing 70-80% YoY… 100pct agree on the global ambition, but there are local oppties that will create 5- 10B companies

Bruno Faviero 的头像
Bruno Faviero8 个月前

Good question when diligencing VCs: what's your MEE?

Marcus Stromeyer 的头像
Marcus Stromeyer7 个月前

What's the source link? Curious to listen to whole thing.

$FKN coin 的头像
$FKN coin7 个月前

I figured this out DAY ONE, and I dont have 200M AUM…. Im a beverage company trying to expand our geographic footprint. THATS THE WAY, BUT…. You gotta have the brand and ideas locked down. We DO!!!!

Alexis Roman 的头像
Alexis Roman7 个月前

Very similar pattern to what we're seeing in SSA. Either markets evolve locally / regionally and help warrant outsized returns. Otherwise founders will have to build global companies that warrant stronger exit multiples.

asif khan 的头像
asif khan7 个月前

Love @pitdesi but isn’t all he’s saying - ‘that one company better pay back for my all my inefficient investing’.

BoxNCase 的头像
BoxNCase7 个月前

True that ..

Chris Lee 的头像
Chris Lee7 个月前

Build for global markets early. You're going to need a product like @deel to scale globally

Ernest🚜 的头像
Ernest🚜7 个月前

THINK BIG or go HOME

Dominik Warchoł 的头像
Dominik Warchoł7 个月前

This is such a powerful perspective. Your emphasis on thinking globally while launching locally really resonates. It highlights how critical it is for founders to transcend geographical boundaries to achieve those massive outcomes that VCs are targeting. By focusing on global problems, entrepreneurs can unlock market potential that far exceeds their local contexts, thus aligning better with investor expectations.

Jagadeesh 的头像
Jagadeesh7 个月前

Till date betting on top grads and exp tech professionals. So,what is the futuristic model ?

Enguerand / VitroBot 的头像
Enguerand / VitroBot7 个月前

"Think global. Launch local. Scale everywhere." Almost worth tattooing

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