Length Of Investments

VCs  invests money in company and help them grow but eventually seek to exit between 3 to 7 years on an average. The length of the investment depends on the stage of growth of the company the investment is made. A seed stage investment is likely to mature in 7 plus years while an investment made in a mature business may take only 3 to 5 years. Which stage the investment should be made  depends on the liquidity profile of the VC which in turn is the result of the sources and cost of funds of the VC