The July issue of VCJ is sure to give readers a jolt. Senior Editor Joanna Glasner did an amazing reporting job for this month’s cover: “Five Ways to Jump Start Your IRR.” With the IPO and trade sales markets fairly flat for the past few years, many VCs are rightly worried about whether they will be able to exit their investments – and return money to their LPs.
Joanna takes a detailed look at the creative exit routes that VCs are taking outside of a traditional IPO or trade sale, such as reverse mergers, selling out to buyout or secondary funds, selling portions of portfolio companies, and going public on alternative exchanges, such as an overseas exchange or a new AIM-like exchange being built by Nasdaq.
The great thing about Joanna’s package of stories is that it isn’t theoretical. It is chock full of real-life examples of venture capital firms and VC-backed companies that have taken alternate exit routes. Joanna also casts a skeptical eye on the various alternatives, clearly outlining the risks for anyone who is considering an alternative exit.
The overall package – artfully laid out by Janet Yuen – is a great piece of service journalism. It’s a must read for any VC who is pondering an alternative exit.
Subscribers can get it here.