The thing is, it’s just so hard to make money investing. Even from a relatively small fund — say $60m — even a $1b IPO may be barely enough for the fund to get truly into the black.
Selling is rational. I sold my first start-up for $50m after 12.5 months. It was awesome. No regrets on that one. But even though we’d sold > 50% of the company in our seed round, and the VCs made 500% on the deal in about a year … the VCs still didn’t come close to “returning the fund” on that deal (i.e., making 1x their total fund). It didn’t really move the needle for their nine-figure funds.
So if you don’t see a bit of craziness, a bit of have to build a big, public company no matter what anyone says, a bit of seeing huge upside and limited downside from pushing on … it’s really hard to invest.
And it’s nothing personal. I sold, I get it.