The reality matters less than the pitch.
Even if LTVs are in the gutter and long-term prospects are grim.
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And its not like anyone is intentionally scamming or that theres an actual Ponzi scheme in play.
These fund dynamics are the inevitable product of the VC environment.
For most LPs, even 10% wont justify the risk.
In other words, its not enough for VC funds to have your startup succeed.
They NEED it to succeed BIG.
Doubly so because some of the other startups in their portfolio will inevitably underperform.
Look, Im not saying that your greater vision doesnt matter.
But not for the reason you think.
Story byRihards Piks
Rihards is a serial entrepreneur and digital marketer, working in the D2C space.
Currently, he’s building Supliful an on-demand supplement fulfillment startup.
Before that, he co-founded, scaled, and successfully sold the D2C online brand Grafomap.
