Exit
Understanding an Exit in Startups
An exit is the process by which investors and founders sell their ownership stakes in a company, typically to realize financial returns. Common exit strategies include selling the company to a larger business (acquisition) or offering shares to the public (IPO). Exits are a primary way for investors to profit from their investments in startups.
Types of Exit Strategies
- Acquisition: The company is sold to another business, often for cash, stock, or a combination.
- IPO (Initial Public Offering): The company goes public by offering shares on a stock exchange.
- Merger: Combining with another company to form a new entity.