‘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 3:
- Is it ever a good idea to have traditional Venture Capital Funds invest in an Angel backed company?
- Checklist to determine whether an individual company should be financed with Angels only or VCs.
- It depends on how much money the company will need, how long before the exit and the likely exit value.
- I believe this era will be called a ‘golden era’ for entrepreneurs and angel investors.
- Never before has it been so easy to build such valuable companies on such small amounts of capital – or to sell them so early.
- Angel investors can finance at least 95% of companies today.
- It’s possible to sell a company much earlier than most people believe – all you really need to do is prove the model.
- That can be before the first million of revenue or even before its profitable. It’s also often the best time to sell.
- Most of the time, entrepreneurs wait too long to exit. They end up ‘riding it over the top’.
- Entrepreneurs and Angel investors would have more fun, and make more money, if they build more companies for early exits.
- The first step is to build alignment on the exit strategy – and only then contact the first prospective investors.
- The exit is just another business process – just like a product development plan, sales plan or financing.
- An exit strategy can be pretty simple – often just a few sentences. The optimum strategy depends on the type of company.
- Developing the optimum exit strategy is one of those things that requires experience. Angels, directors and coaches can help.
- It’s critically important to check the alignment on the exit strategy and then to reaffirm it annually.
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.