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What Startups Need to Know About Exit Strategies

Up and Running

The exit strategy isn’t about you, it’s about your investors. Startups looking for angel investors or venture capital (VC) absolutely need an exit strategy because investors require it. The exit is what gives them a return. The exit is what gives them a return. last December.

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Planning for the Future: Your Exit Strategy

Up and Running

Even if an island in the Maldives isn’t in the cards, if you’re seeking outside investment, an exit strategy is essential. What is an exit strategy? Common exit strategies include being acquired by another company, the sale of equity, or a management or employee buyout. Types of exit strategies.

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7 Costs To Consider Before Taking Your Startup Public

Startup Professionals Musings

Despite the fact that the number of IPOs (Initial Public Offerings) for startups have continued to stay low, I still hear it touted often as the preferred exit strategy. The public company corporate culture may not fit you and your startup. Most startup founders voluntarily exit or are pushed out, and the fun is gone.

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Some Good Startups Don’t Qualify For Equity Investors

Startup Professionals Musings

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.

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Here is Why You Need a Good Startup Exit Strategy

Startup Professionals Musings

If you startup is your dream, why would you want to think about an exit? There are two very real and practical reasons why you need to plan an exit: Outside investors want to collect their return. If your startup was less than a success, you’ll definitely want to erase it from memory. Sell to a friendly individual.

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What’s the Difference Between a Small Business Venture and a Startup?

Up and Running

In comparison to traditional business ventures, startups are expected to grow rapidly, at a rate of between 5% and 7% per week in their initial stage – Paul Graham, co-founder of Y Combinator. The term startup is also associated with a business that is typically technology oriented and has high growth potential.

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Every Startup Goes Through Distinctive Funding Phases

Startup Professionals Musings

Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). It’s helpful to think of startups as proceeding through several stages, which I have defined a long time ago from a funding perspective. Don’t waste your resources on the wrong ones.

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