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GREAT news for companies raising a Seed, Series A, and Series B round globally.
With Voyager’s 82% IPO pop, defense tech VCs see a bright future for liquidity
Why is this good news for earlier stage companies you ask???
Because the venture capital market — at every stage — desperately needs to restart the exit market.
IPOs are obviously not the only exit path. So we don’t need to see a surge of IPOs. But the IPO market needs to exist — which it hasn’t for some time now (meaning — no IPOs. None)
I always explain the funding markets like a conveyor belt. The ‘inputs’ at the start of the conveyor are early stage companies (Seed, Series A). The ‘outputs’ are exits — IPOs, M&A, Strategic Purchases, etc.
If the conveyor belt is jammed at the end (ie. a dead IPO market), then all of the work on the belt gets backed up. Eventually, you can’t add more inputs into the system.
This is a simplistic illustration of why the current Seed, Series A/B funding market is so challenging right now.
So, back to the headline. This IPO is GREAT news for Seed, Series A, and Series B companies globally. Let’s all keep our fingers crossed for more news like this…
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