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What Every Angel Investor Wants You to Know: An Insider Reveals How to Get Smart Funding for Your Billion Dollar Idea
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What Every Angel Investor Wants You to Know: An Insider Reveals How to Get Smart Funding for Your Billion Dollar Idea

by Brian Cohen, John Kador
April 2013
Beginner
272 pages
5h 11m
English
McGraw-Hill
Content preview from What Every Angel Investor Wants You to Know: An Insider Reveals How to Get Smart Funding for Your Billion Dollar Idea

15 Baking in the Exit from the Beginning

Every startup should start with an exit strategy. Entrepreneurs do well to remember that the two sweetest words to an angel investor’s ears are “liquidity event.” They’re not bad for entrepreneurs, either.

A startup’s exit strategy should be signed off on by the founders before seeking dollar one of external financing. A wellcrafted exit strategy, aligned to the characteristics of the startup and market conditions, will improve the probability of success, shorten the time to exit, and often increase the ultimate valuation at exit.

Early exits are attractive for both angels and entrepreneurs. An exit event is the only way angels get paid. “Looking at it in the simplest terms, or as an investor would, the ...

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Publisher Resources

ISBN: 9780071800716