SOFT
v3
SOFT
v3
  • Sustainable Organization Framework for Technology Development (SOFT)
  • How it works
    • Membership
    • Collaboration
    • Sustainability
    • Incentives
    • Governance
  • Conclusion
  • Challenges & limitations
  • Appendix
    • Terminology
    • References
  • FAQs
  • Directory
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  • Predominance of venture capital and exits
  • Profit maximization
  • Social impact
  • Planetary impact

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  1. Appendix

References

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Last updated 1 month ago

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Predominance of venture capital and exits

  • Investment patterns: In 2023, venture capital investments in the US totaled approximately . While the provided research doesn't give an exact percentage of VC firms expecting specific exit paths, the importance of exit strategies for VCs to realize returns is . The PitchBook-NVCA Venture Monitor reports discuss the focus on exits as a key aspect of the VC model.

  • Exit volumes: Between 2018-2023, there were over , primarily through acquisitions (85%) and IPOs (15%), demonstrating the centrality of exit planning.

  • : Standard venture capital agreements explicitly include provisions related to liquidation preferences and exit scenarios, structurally embedding exit orientation into company governance.

  • is increasingly prevalent in accelerator programs, with leading examples like Techstars, and FasterCapital integrating exit strategy guidance—ranging from investor readiness to acquisition and IPO planning—into their core curricula to maximize founder and investor outcomes. While Y Combinator’s exit preparation remains implicit, its focus on scalability and investor readiness creates a foundation for successful exits.

Profit maximization

Social impact

  • : Many entrepreneurs prioritize innovation, societal impact, and solving meaningful problems above financial exits. Founder priorities vary significantly by industry, region, and company stage. But sustainability and user needs often outrank exit planning. The prevalence of exit-focused thinking is influenced by investor expectations and funding environments, but doesn't necessarily reflect founders' internal motivations.

  • User need misalignment

    • : Why does all the social platforms of 21st century have a bottomless timeline to scroll?

    • : The exits of software products leaving users/small organizations with no option but to find another software/tool again to make their lives better.

    • Cart value maximization: What percentage of e-commerce platforms promote conscious consumption over cart value maximization?

  • User well-being

Planetary impact

  • Anti-patterns of global warming: Even after a century of awareness about increased global warming, companies of the 21st century promote

    • Buying SUVs (over standard cars)

    • Importing food from long distances (over nutritionally equivalent local alternatives)

    • Yearly electronic releases (over modular upgrades)

    • Frequent flying

    • Fast fashion

$170.6 billion
consistently highlighted
10,000 VC-backed exits
VC term sheets
Startup exit preparation
Founder distraction
Bottomless scrolls
Product sunsets