India, Feb. 16 -- This article is part of our 10-part series, Insider Secrets: What LPs Must Know to Invest in VC Funds in India, where we decode key insights for navigating this asset class with confidence.

Venture capital (VC) investments require long-term commitments, typically 7-12 years before Limited Partners (LPs) can realize liquidity. Unlike traditional investment vehicles where exits are straightforward, LPs in VC funds must navigate market cycles, valuation changes, and illiquidity constraints. The ability to strategically plan exits is crucial for optimizing fund returns and ensuring capital recycling for future investments.

This chapter outlines the primary exit routes for LPs, the factors that influence exit decisions, and...