Hypergrowth Exit Mindset: Destroying Societal Wellbeing through Venture Capital Biased Social Construction of Value

Abstract

Exit! Exit! Exit! Our innovation ecosystems are focused on this goal above all else, thanks to the reliance on venture capital. Young potential entrepreneurs talk about exit strategies before even creating an innovation or starting a business. Our innovation ecosystems push them to do so in many ways. Seemingly straightforward questions to budding entrepreneurs such as “What is your exit strategy?” drastically shift focus and outcomes away from creating long–term societally beneficial innovations. We argue that this hypergrowth exit mindset is destroying societal wellbeing due to its laser focus on increasing socially constructed exit value above all else. As a field we need much more research about the antecedents and consequences of the mindset, as well as research informed alternative innovation models. To address this fertile research area, we call for more research on alternative models of innovation built upon societal wellbeing as opposed to exit valuations.