Why VCs Can’t Fully Exit at IPO — and Why That’s a Good Thing
Venture capitalists often don't fully exit at IPOs by design, aligning their incentives with public investors. IPOs are transitions, not final exits, ensuring VCs remain accountable post-listing. Lock-in periods protect public shareholders, preventing a "sell the story, not the future" mentality and signaling continued conviction. This structure fosters market trust and benefits founders.