Longer Exits Are New Norm in VC Deals

Exits are longer to come by in the VC world, says Don Rainey, a general partner with Grotech Ventures. Last week, Madison Dearborn Partners bought a majority stake in Fieldglass, which provides software that lets companies manage their temporary labor force. The transaction provided an exit for Grotech, an early-stage investor that has funded firms including Broadsoft, MedAssets and Verity. Grotech held its Fieldglass stake for five years. "That is the state of the exit markets nowadays," Rainey says. "It's not atypical to have six, seven or eight year holding periods."

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