Every company needs an exit strategy. Ideally, the exit strategy should be signed off by the founders before the first dollar of external investment goes into the company. A good exit strategy, well matched to the characteristics of the business and market, will:
improve the probabilities of success
shorten the time to exit, and
often significantly increase the ultimate exit valuation
Most entrepreneurs don’t even know that a VC is likely to block an exit when they accept the VC’s money. I didn’t when I started out —and neither did my friend who I describe in "Why VCs Block Good Exits".
In my first company it wasn’t until the final extraordinary general meeting, when the shareholders were voting to approve the exit transaction, that I actually reali...