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I have been thinking about this subject for a long time, and I came across a blog post precisely about this topic. A venture capitalist by the name of Mahesh Murthy wrote this article.

Let me summarize it quickly.

He is basically talking about a problem in the venture capital scene, that venture capitalists raise their funds from private investors, who may require the fund to basically reach “maturity” (for lack of a better word) in 8-12 years, and realise the returns of funds to the said private investors.