There are multiple possible outcomes for VC startup investments which do not result in an IPO. These include:
1. The startup can be acquired by a strategic player with an existing interest in the business.
2. The startup could be acquired by a Private Equity, (PE) firm and combined with existing parts of it’s portfolio.
3. It could be acquired by another startup addressing simlilar issues
4. The assets of the startup can be liquidated and sold.
For additional insight check out the FundingSage blog article “Are you a Startup Entrepreneur Seeking to Get a Glimpse into the Thinking of an Angel Investor?”