What is an exit strategy for a VC?

Another term for exit is a liquidity event, and it refers to the conversion of an illiquid asset (stock in a business) into a liquid asset (cash). For VCs, acquisition and IPO are the two basic exit strategies of the investment and get the return on investment (ROI).

What is a VC exit?

VCs are but a cog in this entire machine, taking cash from LPs, delivering it to startups, and ultimately returning more cash to the LPs. Another word for exit is a liquidity event, referring to the conversion from an illiquid asset (equity in a startup) into a liquid asset (cash), required by our LPs.

What is a venture capital exit strategy?

The goal of an exit strategy is to maximize the return on investment for the venture capitalists, while at the same time allowing the startup to reach their desired objectives. In this article, we will discuss the various exit strategies available to venture capitalists. An exit strategy is an important part of venture capital investments.