LPs care about IRR and liquidity. That causes VCs who are concerned about satisfying their LPs to also care about fund IRR and liquidity.
Sometimes, there is a tradeoff between liquidity and IRR. Groupon could have sold for $6bn, or perhaps they could IPO at $15bn. There, the board members decided that the prospect of improved IRR exceeded the delay in liquidity.
It's not an accurate representation to state that VCs only care about liquidity when a company isn't going anywhere: given that it's a tradeoff, and that liquidity has heightened importance the older the fund, VCs will push for liquidity even in investments in companies that are certainly doing better than "not going anywhere". The IRRs might be good, but their LPs may really want their money back after ten years, and are willing to sacrifice the IRRs to such an extent that a pretty good return just isn't good enough.
Sometimes, there is a tradeoff between liquidity and IRR. Groupon could have sold for $6bn, or perhaps they could IPO at $15bn. There, the board members decided that the prospect of improved IRR exceeded the delay in liquidity.
It's not an accurate representation to state that VCs only care about liquidity when a company isn't going anywhere: given that it's a tradeoff, and that liquidity has heightened importance the older the fund, VCs will push for liquidity even in investments in companies that are certainly doing better than "not going anywhere". The IRRs might be good, but their LPs may really want their money back after ten years, and are willing to sacrifice the IRRs to such an extent that a pretty good return just isn't good enough.