You are here: Home » Early Exits

Early Exits

What often happens

This is an excerpt from a talk I gave at the Element8 angels workshop: Investing a World With Few Exits. Some of the key points from my talk: I believe only 25% of all companies that could have been sold actually end up successfully exiting If a company misses the ideal time to exit, then […]

Continue Reading

Exit Probabilities

I Thought I Understood Patents When I was CEO of my first technology company I thought I understood how patents worked. But it was only after managing a hedge fund for a few years that I began to appreciate the risks patent holders face. Many entrepreneurs think that the real test of a patent’s value […]

Continue Reading

Recently, at an Exit Strategies Workshop in Victoria, someone asked me to compare the pros and cons of an early exit versus a traditional Venture Capital financing. The scenario we used for our example was a successful startup company with a proven business that needed $10 million to $20 million to fund growth. (In this […]

Continue Reading

Pacinian-Pre-Revenue-30M-Exit

In earlier days, entrepreneurs dreamed of founding an innovative start-up and building it into a big company. After many years of solid sales and profits, the company might be acquired, with founders and investors earning a capital gain. But in today’s fast-evolving technology marketplace, growing a small start-up into a big company may not be […]

Continue Reading

Pacinian Video Thumbnail

It’s rare to be able to post a detailed case study on an early exit. The most interesting information is usually restricted by a non-disclosure agreement. This is a very valuable opportunity to hear directly from the Chairman and a lead investor about what went on behind the scenes in this $30 million pre-revenue exit. […]

Continue Reading

In my early-stage venture capital fund, The BC Tech Fund, I invested in nine companies. About three years after the first investment, three of the nine had achieved early exits – one went public and two were acquired. • Brightside was acquired in February 2007 • Parasun was acquired in May 2007 • Metrobridge went […]

Continue Reading

When I first blogged about early exits in BC all of the comments were negative. This wasn’t surprising. A lot has been written about the negatives of startups being ‘built to flip”. The term has a negative connotation – as if something improper is being done. The most popular article on this topic, titled “Built […]

Continue Reading

Companies everywhere are being sold earlier and earlier. These days, acquisitions often happen before companies are two or three years old. Recent UBC research discovered that in British Columbia and Alberta, we are better at early exits than anywhere else in Canada or the US. In my early-stage venture capital fund, The BC Tech Fund, […]

Continue Reading

Whenever I hear an entrepreneur, or angel investor, say “early exit” they have a really big smile on their face. Even some of my VC friends beam when they talk about the jump in their returns if they’ve gotten lucky with an early exit. In my experience, almost everyone wins in an early exit – […]

Continue Reading

Companies are being acquired at earlier and earlier stages – often just 2 or 3 years from startup. Why is this happening now? A large part of the answer is that this is another natural consequence of the internet – part of the development of our economy and the evolution of our species. There are […]

Continue Reading