Mark MacLeodFounder, Limitless.ceo · The Startup CEO Coach | Helping ambitious CEOs & founders scale world-changing companies without sacrificing their health, happiness, purpose, or humanity

Is $200M a failure for VCs?

3 Dec 2025 · 1 min

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A CEO sold his company for $200 million, but a top VC called it a failure because their 10-20% stake didn't move the fund enough. Tier-1 VCs hunt for home runs relative to their equity. Founders should understand this bar before taking their money.

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I know a CEO whose first company was sold for $200 million. He's on to a second company now, and he's got tier 1 investors on the cap table. One of those investors asked him once, in all seriousness, "Hey, why was your first company a failure?" Think about that. $200 million exit, and in the eyes of that VC, a failure. And I get it. If they own 10 to 20% of the company, then Like, that doesn't even begin to move the needle for most funds. This is something to bear in mind next time you're thinking of raising VC. I don't want you discouraged from doing it, but just remember that VCs, they're just chasing home runs. That's what you're signing up for, especially when you raise from tier 1 investors.