Every entrepreneur and company CEO has tough challenges, not the least of which is deciding upon an exit strategy. Go the home-run (aka Facebook, Twitter), or execute a good solid single or double strategy (Adscape, Bloggger, Picasso, Magento, etc). Understanding the funding and exit timing implications of both is key to making an informed choice.
Early Exits is a great seminar to help business owners take an objective look at their exit strategy options. It is based upon solid research compiled by Peter Basil, author of the book entitled “Early Exits”. It is distributed by the Angel Capital Educational Foundation as part of the seminar series “The Power of Angel Investing” and developed by the Kauffman Foundation.
This seminar was delivered by serial “super” angel Bill Payne. Bill’s vast experience and super presentation skills made for a very informative and lively presentation. Our audience was an equal mix of Angels and Entrepreneurs.
As an tech executive, the seminar was especially great, as it presented really solid insight into the thinking of the angel community. Here are a few of the many takeaways that hit home:
- Entrepreneurs must clearly understand the exit implications of Venture Capital and Angel investments
- Exit strategies, defined early, will help guide the optimal business strategy and market focus
- Angel group syndications are now enabling much larger investments
- Selecting the right Angel, for syndication board representation is critical
- Start up costs have fallen dramatically
- Venture Capital investments are likely not the right choice for many early stage ventures
- Big businesses are just as likely to buy as build, fueling early stage acquisitions
- Exit alignment discussions with your investors should start early and be refined annually
- Early investors may need to be bought out if exit alignments are not in sync
- Businesses are sold and not bought
- Optimal exits involve a well though out sales strategy and a solid team
- Selling a company is a viable option as soon as the business model is proven
- Early, detailed preparation is key for a successful sale transaction
Entrepreneurs, if this seminar comes your way, I’d suggest you attend!
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More on Bill Payne – http://billpayne.com/
Books for the reading list -
Early Exits by Basil Peters
Strategic Entrepreneurism by Jon Fisher, Gerald Fisher and Wallace Wang
Ultimate Exits by Dr. Tim McKaskill
