We could debate what "success" means endlessly, but if you're a VC, your job is to put money in companies with low valuations that will eventually end up with high valuations.
What if every company checked that box and couldn't provide lasting value beyond that? Do we still consider this a success because we're posting on a forum run by a VC?
That would mean an overheated late-stage market. (Which recent IPO data haven’t yet made obvious is a thing.)
I'm going to call BS on that one.
How long do you think that would be a sustainable situation? A high mid to late-private stage valuation is only supported by the promise of subsequent valuations.
If every company stopped achieving those subsequent valuations, it would feed back into the private valuations.
It's all rainbows and unicorns, until someone hands you cash and you manage to exit your private, illiquid investment.
It's certainly the first step towards a possible sale.
Remember that 409A valuations are generally drastically below preferred price. I'd be much more inclined to discuss startup valuations in the terms of 409A valuations.