[dotBen]

If your comment is referring to the bending spoons business model, it's worth pointing out they are not VC, they are private equity.

If your comment is referring to the software company's exiting to provide a return to shareholders, that happens all the time whether it's venture-backed or privately owned. The owners of privately held bootstrapped companies still want an exit one day too.

As an open source software engineer who is now a venture capital investor, respectfully, I think your beef is with capitalism, not with the institutional investors.

[bicepjai]

Not in the startup world beyond what I pick up on HN, but this distinction was helpful. My mental model going forward: - If a company is still validating the business model and optimizing for rapid growth, it’s typically a Venture Capitalist (VC) fit. - If a company is already established and the play is to improve operations, scale, or restructure (often involving a change of control), it’s typically a Private Equity (PE) fit.

[lotsofpulp]

Publicly listed companies buying businesses would be a third “fit”.

[_DeadFred_]

Reminder that restructure often means a company working just fine, but whose assets outstrip what PE can buy it for, so they strip it to the bones. Or they leverage it with debt against assets then pay that money to themselves for consulting, account/hr services that they force the company to outsource to other PE companies. Nothing is 'created' through this process, no value created/added, nor it is healthy capitalism as the company could have continued fine without this added leveraged debt that was purely used to profit PE.