Study: 88% of VC-backed founders get zero at exit — liquidation preferences explained
Zachly · x · 2026-10-24
A new study finds 88% of VC-backed founders receive zero dollars when their companies exit, while bootstrapped founders in SF are dismissed as 'less successful' because fundraising is the only metric that matters. The author argues many funded startups could have bootstrapped to better outcomes, and offers three checks: liquidation preferences can wipe out founders even in decent exits; ChatGPT-wrapper B2B SaaS rarely needs outside money; and only take investor money if they bring expertise, networks and referrals beyond capital.
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