Startup Funding Espresso – Show You Are Thinking About the Exit

Show You Are Thinking About the Exit

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In raising funding, founders should show investors that they are thinking about the exit.

While no one can predict the outcome the investors want to know you are building a company that can be sold for a high price.

This means the business will have facets that generate high returns.

This includes recurring revenue monetization and a platform-based approach.

This also means you’re building a business in a segment that has high growth potential.

In pitching, the founder should show examples of other companies that have achieved an outstanding exit through acquisition or otherwise.

Show the exit value as a multiple of revenue or EBITDA.

Highlight the companies who bought them and why they did so.

Align your business with startups who achieved a great exit and make clear you are building a company that will sell for a premium price.

While the investors don’t always expect things to work out as planned, they want to know you are thinking about an exit strategy.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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