Tomasz Tunguz Blog · 2024-01-07
· 879d
VC Exit Market Volatility: Timing Liquidity Windows in Startup Sales
Startup exits depend heavily on market liquidity conditions rather than company fundamentals, with VC exit values experiencing dramatic 77%+ annual swings. The article emphasizes the critical importance of timing exits during high-liquidity periods, comparing 2021's favorable market to 2023's worst year since the 2008 financial crisis.
Metrics in this report
Annual Liquidity Value Change Probability
82%%
probability
VC exit market, any given year
Magnitude of Annual Liquidity Swings
77%+%
threshold
startup exit valuations
Years Since Worst Exit Market
14years
since 2008 GFC
2023 exit market performance