Mergers and acquisitions (M&A) exits have the same impact on venture capital (VC) reputation as initial public offering (IPO) exits. Young VC firms are just as likely to exit through M&A as through IPO. Young VCs are willing to accept lower premiums for M&A exits and higher underpricing for IPO exits to build their reputation. Reputed VCs increase the chances of an IPO exit over an acquisition exit.