This was the opening keynote at the 2015 Colorado Capital Conference.
The Denver / Bolder area is one of several technology communities where angels and entrepreneurs have somehow developed a deeper appreciation for the importance of early exits. It’s going to be interesting to see if we can track the difference this makes.
- The popularity of the Early Exits book surprised me
- I want to start by emphasizing that:
- Early Exits is not a theory, “entrepreneurial preference” or a “portfolio strategy”
- It’s a “macro-economic observation”
- We understand now that the early exits trend is being driven by the convergence of:
- 1. The Internet
- 2. Changes in big companies
- 3. Changes in startups
- 4. Changes in the global economy
- 5. Possibly even changes in our species
- Case study – the Pacinian Exit
- I believe an early exit is best for something around 98% of startups
- How can a company execute an early exit?
- What does it mean to say a company should be sold, not bought?
- How can we use this in our deal selection criteria?
- The difference between early exits and unicorn hunting
- Someone has to have the job of watching your M&A market
- What do you think about the increase in pre-money valuations?
- Rob Wiltbank’s research: the median exit is around $15 million
- Should startups file patents and how should we align the timeline?
The PowerPoint for this talk is online here.