Venture capital exit pressure and venture exit: A board perspective

Venture capital funds have alimited lifecycle. As the fund ages, venture capitalists(VCs) are motivated to promote venture exit discus-sions with the venture board. We investigate the impactof VCs’ exit pressure on the hazard of four types of ven-ture exit (IPO, high-value M&A, low-value M&A, andliquidation), considering how VCs’ exit pressure influ-ences board collaboration. We find that while the VCs’exit pressure does not affect the hazard of IPOs, thepressure significantly increases the hazard of M&A andliquidation. Achieving important milestones does notreduce the impact of exit pressure on the hazard oflow-value M&A and liquidation. Independent directorsmoderate the impact of the VC’s exit pressure, increas-ing the hazard of high-value M&A and lessening thehazard of liquidation