Startup Professionals Musings

SEPTEMBER 30, 2012

I recently reviewed a good summary of the advantages and disadvantages of an IPO exit strategy for startups in a widely-used textbook “ Entrepreneurship ,” by Robert Hisrich, Michael Peters, and Dean Shepherd. Their synopsis of the key risks should make you look hard for an alternate exit strategy: Increased risk of liability.

Exit Strategy 239

Exit Strategy IPO Investment Bankers Entrepreneur 239

Startup Professionals Musings

SEPTEMBER 12, 2014

Yet one of the first things a potential equity investor asks about is your exit strategy. Here are three important reasons for the question: Good investment paybacks normally require an exit event. This alternative is often paired with a personal no-exit strategy.

Exit Strategy 289

Exit Strategy Entrepreneur IPO Startup 289

Startup Professionals Musings

OCTOBER 18, 2023

In addition, current investors want to see every startup go public or be acquired, as an exit event, so they can get their due return for that investment which has been tied up for the last few years. For these reasons, I always look for an overt exit strategy in every startup I might consider for an angel investment.

Exit Strategy 248

Exit Strategy Valuation Acquisition Metrics 248

Startup Professionals Musings

DECEMBER 20, 2019

Initial Public Offerings (IPO) are back as an exit strategy. Three of these, JUUL Labs, Didi Chuxing, and Toutiao have already passed $50 billion. Thus a record number of entrepreneurs (and team members) are getting rich. Statistica reports that almost 20 percent more companies went public in 2018 versus 2017.

North America 320

North America Incubator Initial Public Offering Exit Strategy 320

Startup Professionals Musings

JANUARY 9, 2021

In addition, current investors want to see every startup go public or be acquired, as an exit event, so they can get their due return for that investment which has been tied up for the last few years. For these reasons, I always look for an overt exit strategy in every startup I might consider for an angel investment.

Exit Strategy 434

Exit Strategy Valuation Acquisition Metrics 434

Startup Professionals Musings

APRIL 27, 2016

Yet one of the first things a potential equity investor asks about is your exit strategy. Here are three important reasons for the question: Good investment paybacks normally require an exit event. This alternative is often paired with a personal no-exit strategy.

Equity 120

Equity Exit Strategy Private Equity Startup 120

Startup Professionals Musings

SEPTEMBER 8, 2019

Some nonprofit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy. You still start the process with a business plan, but then you look for a philanthropist rather than an investor.

Equity 235

Equity Angel Investor Technical Review Exit Strategy 235

Startup Professionals Musings

MARCH 3, 2021

Show that you anticipate this, how they will react, and how you have ongoing strategies to stay ahead. Present a viable exit strategy for investors to cash out. Equity investors realize that they won’t see any real return until an exit occurs, such as a sale, merger, or IPO.

Exit Strategy 406

Exit Strategy Merger Angel Investor IPO 406

Startup Professionals Musings

JUNE 26, 2020

Outline a viable exit strategy for you and investors. The options here include going public (IPO), merger/acquisition, liquidate, or no exit, just paying off investors. Investors want to know how and when they might see some return on their investment, since startups require some event to show value.

Business Plan 423

Business Plan Product Intellectual Property Elevator Pitch 423

Startup Professionals Musings

JUNE 2, 2013

Exit strategy. What’s most realistic these days is an exit via sale to an existing major company for which you solve a meaningful problem. Shooting for that sort of exit over a three to five year period is usually the best strategy. No exit strategy means no return to investors.

Cram Down 269

Cram Down Angel Investor Intellectual Property Venture Capital 269

Startup Professionals Musings

JULY 5, 2023

Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). It won’t work, it costs time and money, and hurts your credibility when you need them later. The challenge is finding and using qualified affordable support organizations for each stage.

Incubator 305

Incubator Startup Exit Strategy Institutional Investors 305

Startup Professionals Musings

OCTOBER 14, 2023

It only takes a little extra work to make it a professional document, with a cover page, table of contents, headings, and page numbers.

Silicon Valley 257

Silicon Valley Exit Strategy Startup Business Plan 257

Startup Professionals Musings

OCTOBER 8, 2023

Make sure these cover your business model and exit strategy, so the angels see how both of you will make a reasonable return. Perhaps you can get money from friends and crowdfunding with no plan, but angels look for the extra discipline and effort demonstrated in a written plan.

Venture Capital 265

Venture Capital Accredited Investor Syndicate Syndication 265

Startup Professionals Musings

JUNE 6, 2013

Make certain you as the founder and the CEO are on the same page on mission, company values, exit strategy, and workplace model. The CEO needs to know how to qualify and close deals, as well as who to sell to, why do they buy, pricing, and what your strengths are against the competition. Communicate company values and culture.

Technical Cofounder 219

Technical Cofounder Cofounder Startup Exit Strategy 219

Startup Professionals Musings

SEPTEMBER 20, 2017

Some nonprofit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy. You still start the process with a business plan, but then you look for a philanthropist rather than an investor.

Angel Investor 132

Angel Investor Equity Technical Review Exit Strategy 132

Startup Professionals Musings

JANUARY 21, 2018

Initial Public Offerings (IPO) are back as an exit strategy. Two of these, Uber and Didi Chuxing, have already passed $50 billion. Thus a record number of entrepreneurs (and team members) are getting rich. Bloomberg reports that forty-nine percent more companies went public in 2017 versus 2016.

Entrepreneur 166

Entrepreneur Valuation Incubator Initial Public Offering 166

Startup Professionals Musings

MARCH 10, 2023

External investors expect a documented business plan, with clear targets on funding needed, use of funds, revenue projections, return potential, and exit strategy. Even if you are not requesting outside funding, I would expect a clear process for sourcing and managing the investment you plan to apply. Team building status and plan.

Exit Strategy 288

Exit Strategy Metrics Operations Cost 288

Startup Professionals Musings

OCTOBER 7, 2022

The best way to show return on investment is to declare an exit strategy, such as being acquired or going public in the next five years, which allows the investor to cash out. Equity investors typically look for 10 times return projections, since they expect many of their investments to fail totally.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

Startup Professionals Musings

DECEMBER 19, 2021

No investor likes searching every page for key data, like executive credentials, or exit strategy. Then proofread your text carefully to be sure you're not using a properly spelled incorrect word. Include table of contents. Most word processors these days can automatically generate a table of contents from your section headings.

Exit Strategy 339

Exit Strategy Business Plan Audience Search 339

Startup Professionals Musings

OCTOBER 12, 2020

Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). It won’t work, it costs time and money, and hurts your credibility when you need them later. The challenge is finding and using qualified affordable support organizations for each stage.

Incubator 429

Incubator Startup Exit Strategy Institutional Investors 429

Startup Professionals Musings

OCTOBER 13, 2013

Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy. You still start the process with a business plan, but then you look for a philanthropist rather than an investor.

Equity 207

Equity Angel Investor Technical Review Exit Strategy 207

Startup Professionals Musings

JANUARY 7, 2013

Based on the final report for 2012 from Thomson Reuters and the National Venture Capital Association (NVCA), it may appear that IPOs are back as a viable startup exit strategy. For the full year 2012, venture-backed initial public offerings raised $21.5

Venture Capital 252

Venture Capital IPO Elevator Pitch Initial Public Offering 252

Startup Professionals Musings

DECEMBER 26, 2013

Initial Public Offerings (IPO) are back as an exit strategy. A year from now that’s projected to go as high as 100. Thus a record number of entrepreneurs (and employees) are getting rich. According to a report just out, a record 156 operating companies went public in the U.S. in 2013, with aggregate proceeds of over $38 billion.

IPO 273

IPO Entrepreneur Social Media Startup 273

Startup Professionals Musings

AUGUST 23, 2021

What do you see as your legacy and exit strategy? If your goal is to compete with Jeff Bezos, then be prepared to manage thousands of locations and employees around the world, with all the issues to get exponential growth.

Startup 399

Startup Exit Strategy Cofounder Equity 399

Startup Professionals Musings

SEPTEMBER 15, 2012

Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy. You still start the process with a business plan, but then you look for a philanthropist rather than an investor.

Angel Investor 218

Angel Investor Technical Review Exit Strategy Equity 218

Startup Professionals Musings

MARCH 11, 2016

The business plan should address all key questions, including valuation, funding needed, use of funds and exit strategy. These may not be required, but they will help convince an investor that you have a real plan to execute and understand the variables that affect every business.

Angel Investor 120

Angel Investor Intellectual Property Accredited Investor Angel Groups 120

Startup Professionals Musings

MAY 2, 2012

Make certain you as the founder and the CEO are on the same page on mission, company values, exit strategy, and workplace model. The CEO needs to know how to qualify and close deals, as well as who to sell to, why do they buy, pricing, and what are your strengths against the competition. Communicate company values and culture.

Founder 248

Founder Startup Exit Strategy Leadership 248

Startup Professionals Musings

JANUARY 31, 2021

It only takes a little extra work to make it a professional document, with a cover page, table of contents, headings, and page numbers.

Silicon Valley 342

Silicon Valley Exit Strategy Business Plan Restful 342

Startup Professionals Musings

OCTOBER 14, 2016

Credible yet flexible exit strategy. Additional defensibility elements that unicorn investors look for include speed of implementation, rate of revenue and user growth, and exceptional team strength and leadership. The number of new ventures that successfully navigate the path to a public offering (IPO) with big numbers is still small.

Intellectual Property 120

Intellectual Property Valuation Merger Exit Strategy 120

Startup Professionals Musings

JULY 3, 2011

Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy. You still start the process with a business plan, but then you look for a philanthropist rather than an investor.

Angel Investor 238

Angel Investor Technical Review Exit Strategy Equity 238

Startup Professionals Musings

MARCH 12, 2021

You should plan an exit strategy, and optimize your activities and timing to get top dollar. Selling your business requires the same energy and passion as growing it. Once you have lost that edge, and potential buyers will sense it quickly, the value of your business will trend down quickly.

Due Diligence 410

Due Diligence Intellectual Property Bankruptcy Exit Strategy 410

Startup Professionals Musings

FEBRUARY 15, 2015

Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy. You still start the process with a business plan, but then you look for a philanthropist rather than an investor.

Angel Investor 120

Angel Investor Equity Technical Review Exit Strategy 120

Startup Professionals Musings

JANUARY 27, 2021

Make sure these cover your business model and exit strategy, so the angels see how both of you will make a reasonable return. Perhaps you can get money from friends and crowdfunding with no plan, but angels look for the extra discipline and effort demonstrated in a written plan.

Search 317

Search Accredited Investor Angel Investor Venture Capital 317

Startup Professionals Musings

SEPTEMBER 28, 2015

This will lead to investor-return calculations and exit strategies. Many startups fail due to too much success too early, without the cash or investors to cover subsequent costs for manufacturing, inventory and receivables. Make sure your financial projections quantify the timing and amounts of cash infusions from investors.

Exit Strategy 120

Exit Strategy Technical Review Distribution Viral 120

Startup Professionals Musings

JULY 19, 2015

Initial Public Offerings (IPO) are back as an exit strategy. Two of these, Uber and Xiaomi, are already above $40 billion. Thus a record number of entrepreneurs (and employees) are getting rich. Last year was the most active year for IPOs in the United States since 2000. Total U.S.

IPO 120

IPO Angel Investor Startup Incubator 120

Startup Professionals Musings

NOVEMBER 4, 2011

It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. As a founder, you may think that everyone understands your vision and plan from your passion and words, but it doesn’t work that way. Finalize your financial model.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

Startup Professionals Musings

JUNE 7, 2020

External investors expect a documented business plan, with clear targets on funding needed, use of funds, revenue projections, return potential, and exit strategy. Even if you are not requesting outside funding, I would expect a clear process for sourcing and managing the investment you plan to apply. Team building status and plan.

Entrepreneur 328

Entrepreneur Exit Strategy Metrics Operations 328