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November 2, 2013 10:00 pm GMT

Welcome To The Unicorn Club: Learning From Billion-Dollar Startups

unicorn2aMany entrepreneurs, and the venture investors who back them, seek to build billion-dollar companies.Why do investors seem to care about billion dollar exits? Historically, top venture funds have driven returns from their ownership in just a few companies in a given fund of many companies. Plus, traditional venture funds have grown in size, requiring larger exits to deliver acceptable returns. For example - to return just the initial capital of a $400 million venture fund, that might mean needing to own 20 percent of two different $1 billion companies, or 20 percent of a $2 billion company when the company is acquired or goes public.

Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/7AizcXRu7Hw/

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