General
exit
What does exit mean?
The event where founders and investors cash out, typically through acquisition or going public.
"They're building toward an exit in three years."
Origin
Venture-capital terminology.
Frequently asked questions
What is an exit in startup terms?
It's the event where founders and investors cash out of a company, typically through an acquisition or an IPO (going public).
Why do investors care about the exit?
Because the exit is how venture investors realise their return. They put money in expecting to sell their stake for more at the exit.
What is an exit strategy?
It's the planned route for how founders and investors will eventually cash out, such as being acquired or going public.
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