‘Exit Early – Exit Often’ Keynote Speech
Keynote at the Capital Connects! Southeastern Regional Angel Capital Association Meeting, Greensboro, North Carolina – October 1, 2009
Highlights of the ‘Exit Early – Exit Often’ Video – Part 1:
- My background and how I became fascinated with early exits.
- The BC Tech Fund – in three years, I made 9 investments and had 3 exits.
- Why I think this will be called a “golden era” for entrepreneurs and angel investors.
- Angel investing is still quite new – at about the same stage of development as Venture Capital was in the early 1980s.
- Angel investing has often been described as the ‘freeway on ramp’ or ‘farm team’ for VCs. That hasn’t worked well for the angels.
- Successful investing requires two things: buying right and exiting well.
- Small and medium sized M&A transactions have been holding up surprising well during the recession.
- The median price for private company M&A transactions is under $20 million – and may be as low as $15 million. Big companies know they aren’t good at new ideas or startups. They are good at growing values from $20 million to $200 million.
- Their sweet spot is to buy companies in the range of $10 to 30 million. At $100 million it gets much more difficult.
- Today, the corporate buyers are competitors to the traditional Venture Capital funds.
Many of the lessons I’ve learned are described in my new book on exit strategies for entrepreneurs and angel investors – www.Early-Exits.com.