How long will it take for my investment to generate returns?

1 Answer(s)

Startup investments are typically long-term investments with 5- to 8-year horizons.  However, given the multitude of factors that can create a payout event and the stages at which you may invest, this varies widely.  There are scenarios that may result in a payout within a year or two, such as an early acquisition as a means to obtain proprietary technology or specific executive talent.  Likewise, it could be possible that an IPO is the event that triggers a payout, and if you are one of the initial investors in a company, you could be waiting upwards of a decade to receive your return.  The time between Facebook’s founding and IPO was 8 years (2004 – 2012).  

acr30 Expert Answered on September 7, 2015.
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