What Founders Need to Know: You Were Funded for a Liquidity Event – Start Looking
MARCH 16, 2016
Liquidity. While you might be interested in building a company that changes the world, regardless of how long it takes, your investors are interested in funding a company that changes the world so they can have a liquidity event within the life of their fund ~7-10 years. (A A liquidity event means that the equity (the stock) you sold your investor can now be converted into cash.) Currently M&A is the most likely path for a startup to achieve liquidity.