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As you probably already know, the whole strategy of a venture capitalist (or, often, another early-stage investor in a private company) is to put money into a number of companies while they're still developing their products or business strategies (and before the world as a whole recognizes how successful they will eventually be), in the hope that as many of them as possible will take off and become the next Google, or at least be in a position where the investing world as a whole recognizes that they're a LOT more valuable than when the investment was made. In order for venture capitalists to get their money back - with, they hope, a big profit - they need an "exit." The most common exits would be (i) the company going public in an IPO, so the VCs can sell their shares in the IPO, or in the public market afterward or (ii) the company being acquired by some other company for a substantial amount of money. The latter is, as you might guess, an "M&A exit."

by hlstarch

3 weeks ago

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