Re:Ask HN: What are some indicators that a company will have...
by Johnie on Tuesday July 25, 2017 @03:12PM
(#14850938)
Don't forget about employees. Much of early employee compensation is in the form of equity. After 4 years, people expect to monetize and reap some of the rewards. If there is no exit in sight, the senior employees start making for the exit.
After 7-12 years in VCs will want to get their money out to pay out their LPs. Around this time they will start pressuring management to find a buyer or prepare for an IPO. Though this pressure depends a lot on the company's financial situation and how willing the VCs are to wait for an exit.
It's not the best indicator but it still is one.