Unlike many VCs who hold winners indefinitely, LeadEdge has a formal disposition committee that meets monthly. They constantly underwrite the forward IRR of each position and proactively sell, even in secondary markets, if a target return is met early.

Combat indecision and emotional attachment by pre-committing to sell an investment if it fails to meet a specific metric (the state) by a specific deadline (the date). This creates a pre-commitment contract that closes long feedback loops and prevents complacency with underperforming assets.

Investors spend hours on due diligence before buying but rarely pre-define their selling criteria. This leads to emotional decisions, typically selling after a period of underperformance, which undermines the initial long-term thesis. A pre-defined sell plan is crucial for success.

Founders who try to perfectly time an exit with market conditions are twice as likely to have second thoughts and report less satisfaction. The most fulfilled founders are those who sell when they are personally ready, regardless of market timing.

To combat the emotional biases around selling, founders should proactively schedule an annual board meeting dedicated to rationally discussing a potential exit. This normalizes the conversation and ensures strategic decisions are made based on market timing and opportunity cost, not just momentum.

Instead of making emotional decisions, establish "kill criteria" for each investment: a specific KPI (a state) that must be met by a certain time (a date). If the company fails to meet the predefined metric, you sell. This provides a disciplined, objective framework for portfolio management.

Selling a company is an intensely emotional process. Rushing into investments during this period leads to poor decisions. The first step for any founder post-liquidity should be to wait at least 90 days, allowing emotions to settle before creating a long-term financial strategy.

To avoid emotional, performance-chasing decisions, institutional LPs should create a 'kill list' for each manager. This document pre-defines the fundamental criteria for redemption, ensuring that exit decisions are based on a disciplined, pre-agreed framework rather than market noise.

While having a disciplined rule like reviewing a stock after 24 months is useful, it should be subordinate to a more critical rule: sell immediately if the fundamental investment thesis breaks. This flexibility prevents holding onto a losing position simply to adhere to a predefined timeline.