Gurley explains VCs can only join about two boards per year, unlike public investors evaluating unlimited positive-IRR opportunities.
“If it's positive IRR and I'll make 14%, I'll do it. Yep. But venture capitalists have a limited number of boards they can go on, probably two a year.”
Gurley notes owning 100% of a $20 million exit creates lifetime wealth and attracts more acquirers than larger exits.
“Your boss won't care. If you own a 100% of a $20,000,000 company, that's lifetime wealth.”