Founders may have ceded excessive control to VCs in blocking IPOs
Late-stage VCs may be preventing their startups from going public in 2024 Founders might have unintentionally given their VCs too much power to block an IPOWhile some investors are loudly bemoaning that the IPO window can’t stay shut forever, other VCs themselves are actually part of the problem.
It’s a common term for late-stage investors agreeing to pay higher prices for their stake to boost a startup’s valuation.
When late-stage startups raised at sky-high valuations in 2021 they may not have realized how much power they were giving their late-stage investors if the market cooled, which it did.
“People confuse up and to the right, with a god-given right,” Hinkle said.
He added that there is always a lot more friction between investors and startups about the decision to IPO than investors would like to admit.
