‘Exit Early – Exit Often’ Keynote Speech
Keynote at the Capital Connects! Southeastern Regional Angel Capital Association Meeting, Greensboro, North Carolina – October 1, 2009
- Why I think this will be called a “golden era” for entrepreneurs and angel investors.
- Successful investing requires two things: buying right and exiting well.
- The median price for private company M&A transactions is under $20 million.
- Today, the corporate buyers are competitors to the traditional Venture Capital funds.
- Traditional Venture Capital could shrink to half, even a quarter, of it’s current size.
- 92% of M&A exits don’t work for these traditional VC funds – but they all work well for Angels and entrepreneurs.
- So Angels and Entrepreneurs have a choice – an exit in 3 to 5 years without VCs or 10 to 14 years with VC investment.
- Angels alone are “as likely as the VC backed firms to have successful liquidity events”.
- 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.
- It’s possible to sell a company much earlier than most people believe – all you really need to do is prove the model.
- Developing the optimum exit strategy is one of those things that requires experience. Angels, directors and coaches can help
- Will institutional investors start to put money into Angel investing?
- What does make sense for Venture Capital funds today?
- Are tax credits for angel investors a good idea?
- How long will corporate buyers continue to buy young companies?
- What should Angels be including in the term sheet to facilitate the exit process?
Many of these lessons are described in my new book on selling businesses for entrepreneurs and angel investors – www.Early-Exits.com.