Successful Black Entrepreneurs

8Entrepreneurial Exits: Selling the Company

“Most entrepreneurs that receive investments, do not give any returns to those investors. So, to be able to see that we got there and had an exit, I was excited. I was proud.” ¹

—Juanita Lott, founder of Bridgestream Inc.

WHILE ENTREPRENEURS CAN leave a company for many reasons, voluntary or involuntary, this chapter focuses on the former. When a Black entrepreneur willingly sells part or all of his company for the purpose of “cashing out,” it is a definitive marker of entrepreneurial success. Almost all entrepreneurs want to monetize a portion, or all, of the value they have created in their entrepreneurial venture. Typically, cashing out is considered the final stage in the entrepreneurship process. That follows the stages of concept, start-up, survival, stability, and/or growth. One Black entrepreneur who reached the cashing out stage was Juanita Lott, the founder of Bridgestream Software.

With an academic background in liberal arts and no training or experience in technology and engineering, Lott was not the traditional candidate to start a technology company. However, she believes that her extensive experience in the nontechnical side of the software industry provided her with unconventional and valuable insights. She notes, “I had spent over 10 years at the C-Suite level as an executive in software, as the chief of HR (human resources) officer. So, I dealt with all of the people issues. I dealt with all of the changes that ...