Most founders have NO IDEA what game they're playing when they take VC money.The math is sobering:
Limited Partners (LPs) want a modest 3x return over 7-10 years.
But seed VCs?
They need 100x returns from YOU.
Why this massive difference?
→ Because most startups fail
→ VCs need unicorns to offset the losers
→ This creates a high-pressure ecosystem
Here's what this means for your startup:
You need a $1B+ exit (crazy but true)
Your annual revenue must hit $100M+ in under a decade
You must demonstrate:
• Hypergrowth (2-3x YoY)
• Massive market opportunity ($10B+)
• Capital efficiency (software > services)
The venture path isn't for every business.
Many fantastic companies never need to hit these metrics.
But if you take VC money, understand:
→ You're not building a business
→ You're building a rocket ship
→ And the fuel is burning (whether you're ready or not)
I've watched too many founders realize this too late.
They took funding without understanding the expectations.
Is your business truly positioned to deliver these returns?
Or should you consider alternative funding models?
What's your experience with venture expectations versus reality?
