Exit
Also called Exit Strategy
The event where founders and investors convert their ownership into cash or liquid assets, usually through an acquisition or an IPO. The end goal of most venture-backed companies.
Why it matters
The prospect of an exit is what motivates venture investment, and understanding the realistic exit paths for your business shapes fundraising and strategy. But building toward a great company usually beats optimizing narrowly for an exit.
For example
After eight years, the founders exit when a larger company acquires the startup, turning their equity into cash for the first time.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Founder life, part of the Starting Up hub.
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