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Re:VC Fund gives money back, says startup market too weak by gtCameron on Wednesday October 02, 2024 @12:09PM (#41722085)
There isn't a return for shareholders if the valuations are lower. The problem is not management holding the business hostage today, the problem was investing at unsustainable multiples a few years ago.

Now the only options are to either cash out at a lower valuation and not make any money, or wait and hope the business grows to the point where you can get a higher total valuation despite the lower multiple and see a return on your capital.

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