So I mentioned last week that I’d be giving a bit of insight into the day-to-day happenings in the life of a young VC, or as my business card would say “Associate.” Now, making an investment is pretty exciting, right? You’re putting money into a company, hoping that all of your analysis (whether in your gut or in Excel) turns ultimately into an exit of some sort, either through an acquisition or IPO. Well, what exactly happens when an exit occurs?
I got my first glimpse of that yesterday, when TxVia, one of New York City Investment Fund’s portfolio companies, announced that it had been acquired by none other than Google! Congrats to Anil and the rest of the team. Now, I can’t divulge too much in the way of the financial details, which remain closed off to the general public, but hopefully I can shed a little bit of light into the other REALLY EXCITING DETAILS for you!
…it’s funny, though. At least on my end, there wasn’t really anything too different about my day. Sure, I saw a few extra emails in my inbox yesterday morning and had a few discussions with my CEO and General Counsel about the deal, but business pretty much just proceeded as normal. At the end of the day, I calculated our IRR based on the closing docs I received from our General Counsel (sorry, I cannot disclose that number!) and… that’s about it. I went on to finish the summary of an investment memo that was due, prepared some materials for the FinTech Innovation Lab and, well, went about my business as usual. What’ll happen next? Well, I’m sure I’ll have a bit more work to do in the coming days, and the funds will be wired to our account sometime this week, but that will pretty much be that.
Kind of a letdown? Perhaps. But at the end of the day, it’s essentially just a transfer of ownership, right? The real excitement, at least for me, is really in those initial meetings with the entrepreneurs, talking with company management about how their product or service is going to disrupt an industry or change the world. Maybe being removed from direct financial benefit of an exit as a junior investment professional changes the perspective some, but getting the opportunity (in whatever capacity) to help an entrepreneur as they build something out of nothing — now that I can get excited about every day, exit or not!
Now, without further ado, congratulations again to TxVia and here’s to many more successful New York startups in the future!
Note: I work at a bit of a non-traditional venture firm as you may have noticed, so YMMV. If you’re a junior VC at another firm and get million dollar bonuses at each exit, please comment below with your name and number, and I’ll be sure to contact you ASAP. Also, the above describes a strategic acquisition. If you’re looking for deets on what happens in an IPO, you gotta look for another blog.