Every time a startup raises $100M, $200m+ or more and exits for less that a few times that, the same narrative emerges: “Evil VCs and their liquidation preferences screwed the employees!”
Sure, VCs enabled it to some extent. But let’s be honest about who made the call.
The CEO chose to raise that much money.
You don’t need $100M+ to build and scale a B2B business. Plenty of profitable SaaS companies have been built on <$10M total funding. The CEO who takes massive rounds is making a bet: we’re going to be a unicorn or bust.
That’s a valid strategy, but own it.
When you raise at a $500M valuation or higher. you’re not just taking money—you’re signing up for unicorn-or-nothing expectations. Anything less than a massive outcome and no one really makes any money.
The math is simple:
- Raise $200M at high valuations
- Need to exit for $1B+ for employees to see meaningful money
- Most companies don’t hit that bar
- Then: employees often get nothing, VCs get their money back but 0% gain
This isn’t VCs being predatory. It’s CEOs choosing growth-at-all-costs. Sometimes that works. Just know what you are signing up for.
The “$100M+ Raised” Reality Check: A Checklist
Before you join that hot startup or push for another mega-round, run through this:
☐ If they’ve raised $100M+, assume your equity = $0 unless they IPO or sell for $1B+-$2B. It just ends up being so, so much money in.
☐ “Raising more” isn’t always winning Every dollar raised moves the goal posts further away from you making money. That Series C celebration? It might have just priced out your payout.
☐ A “save” is something, but it isn’t a “win” Selling for $120M after raising $100M? That’s avoiding bankruptcy, not success. The VCs might get their money back, you get a “thanks for playing.”
☐ Do the math before you sign Ask: “What does this company need to sell for before I see a dime?” If the answer makes you uncomfortable, go somewhere else. It’s that’s simple.
☐ Understand what you’re signing up for High-growth, high-burn startups are binary bets. You’re either getting rich or getting nothing. There’s rarely an in-between.
☐ Own the outcome If you pushed for aggressive fundraising, own that you chose unicorn-or-bust. Don’t blame the VCs when “bust” happens.
