The Guide to Entrepreneurship

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Chapter 15

Harvesting

15.1 Introduction

Even before you start your entrepreneurial venture, you must strategize how

you personally intend to exit. An exit strategy is the way in which a venture

capitalist or business owner intends to monetize an investment. An exit strat-

egy is also called a liquidity event.

Planning an exit strategy is one of the most misunderstood considerations

of a business strategy, yet the exit strategy plays a crucial role in determin-

ing the strategic direction. Founders must have a denitive exit strategy

before approaching investors, clearly reected in their business plan. An

entrepreneur’s exit is both a career c ...