CHAPTER 6

Investment Management, Staged Financing, and Exits

The only valuation that really matters is the one at the end.

Introduction

In this chapter, we discuss the “post investment” period that begins with the signing of the deal agreement and concludes with a liquidity event or exit. Upon signing of the agreement, the entrepreneur and investor now share a common purpose of building business value toward a future profitable exit. This shared vision should influence most business ­decisions—­whether they are about customers, recruiting new team members, or forming strategic ­partnerships—­and should be revisited regularly.

A key challenge for the entrepreneur and business angel (BA) investor in the post investment period relates to “aligned ...

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