author John Gabbert is @PitchBook’s CEO and founder, the company through the best data, technology and services to provide private equity and venture capital industry transparency report.
I never really wanted to be an entrepreneur. As a matter of fact, when I was in VentureOne, I had the idea of PitchBook – if they agreed, I’d do it there. Eventually, I started to do the PitchBook project, because I clearly see the needs of customers, as well as a chance to do something interesting.
a few months into the project, Shazam CEO Rich Riley (one of our earliest investors) asked me: "you PitchBook how strong? If you have a chance now, $200 thousand salary, can work in any company, will you go?" after about a year, also is the recession ended, my mother called and asked me whether to start looking for a new job.
there is no doubt that my two answer is no..
last week, financial writer Kyle Stanford published an article comparing the company led by the founder of the exit and the withdrawal caused by professional CEO. I think that when the founders have their own leadership, always bring more experienced CEO, therefore, the exit time is longer.
in any case, Kyle’s article caused a lot of discussion, the founder of the duties and the current environment should be how to do. The following is my view on this issue:
in the past, venture capital backed companies from the time of creation to exit, usually 5-7 years. According to our latest liquidity report, the average time from start to exit is 7-9.
to take into account the assessment level and the level of capital, for entrepreneurs and venture investors, if they expect to be able to quickly exit, a big check and a chance to start again, so from now on is not too realistic.
this is the problem: it is generally believed that entrepreneurs have the responsibility to maximize the value of the company, and as soon as possible to repay the funds of investors. In the past, many companies have achieved this goal by turning quickly.
but at the time of the exit slowdown (a good year, there are about 2500 exits, in the field of venture capital support accounted for 7%), facing a financing environment more challenging short-term prospects. At this time we found that the potential investment projects, according to the basic value of the old-fashioned way of assessing a lot of investors.
for entrepreneurs, this is a real challenge. Because it means that we not only have to create