15 Baking in the Exit from the Beginning

Every startup should start with an exit strategy. Entrepreneurs do well to remember that the two sweetest words to an angel investor’s ears are “liquidity event.” They’re not bad for entrepreneurs, either.

A startup’s exit strategy should be signed off on by the founders before seeking dollar one of external financing. A wellcrafted exit strategy, aligned to the characteristics of the startup and market conditions, will improve the probability of success, shorten the time to exit, and often increase the ultimate valuation at exit.

Early exits are attractive for both angels and entrepreneurs. An exit event is the only way angels get paid. “Looking at it in the simplest terms, or as an investor would, the ...

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