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Exit Strategy

Q: How can I move on and move out of my business once I receive funding? Should I really be concerned about the exit strategy?

• If you’re building a company, you’re doing it as a long-term endeavor, and the way to create an exit strategy is to create a company that makes money. If a company makes money, you will have multiple opportunities to exit that company with somebody buying you or somebody taking a piece of it. But it takes a long time to make money. If you put the exit strategy before making money, you have a high probability of failure.
  [John Burton] from Positioning Your Comapny for Early-Stage Financing
• Remember that the venture capitalists want to get a good return on their money. The only way they can get a good return on their money is if they have a way of turning equity in your company into money. So, an investor is going to be your partner for a long time. And that is the extent to which you should think about exit strategy.
  [Chuck Stein] from Positioning Your Comapny for Early-Stage Financing

   

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