How does this influence startups?

It’s important that startups recognize how Venture Capital firms work. As we’ve mentioned countless times before, investors back startups with one main objective in mind: getting a return on their investment. They’re in for the money, mostly.

It’s also worth noting that Venture Capital funds have a fixed life of about 10 years, thus establishing investing cycles that last for about three to five years. After that the firms will work alongside the startups and founders to scale and seek an exit, providing the returns that they sought in the first place.