The headlines may obsess over the WhatsApps and Twitters of the world, but the reality is most venture-backed startup exits are smaller and far from being unicorns.
According to CB Insights data, 2013 saw 67% of tech startups exit after either the seed or Series A stages. While a portion of those went to acqui-hires of startups hitting the Series A Crunch, the data is more likely a reflection of the venture capital power law in which the best investments returns more than the rest of the investments combined. The chart below highlights the last round of funding raised prior to M&A or IPO exit of venture-backed tech companies last year; Just 3% of VC-backed tech exits went to startups at the Series D+ stage.
