"None of these approaches is likely to result in returns that are as good as what could be obtained in a strategic sale at a big premium or an IPO in a strong market environment. A company with $20mm of pre-tax cash flow is likely to have close to or greater than $100mm in revenue and could possibly exit or IPO for between $300mm to $500mm in a strategic sale or IPO in a good market environment. If the investors own 36% of the Company, their proceeds in that kind of an exit would be $110mm to $180mm, higher than what could be obtained in any cash flow based exit scenario."

Do other VCs think like this?