Flying Fox Ventures’ Post

It's Cut Through Venture data release day, and the The Australian Financial Review has noted that IPOs are becoming an increasingly rare form of exit. No surprise there. While an IPO can be a significant milestone for a large, fast-growing company, it’s not necessarily an exit in itself. As Rachael Neumann points out in the article, companies still in high-growth mode may need more patient capital to support long-term, bigger-bet strategies. But here’s the thing: for investors, patience can be overrated. There's a common misconception in venture that every fund needs to invest ‘from day one until forever’. In reality, there’s nothing wrong with an investment strategy that optimises for liquidity windows. It’s exactly how we operate at Flying Fox Ventures. Big funds that need to create billions in enterprise value must play the long game. Smaller funds, on the other hand, can deliver impressive multiples by selling to downstream investors much sooner. As the Australian venture ecosystem matures, it’s essential that we nurture a strong mix of both approaches—and everything in between. AFR article in comments (paywall).