Exit Strategies for Angel Investors Part 1

Exit Strategies for Angel Investors – Part 1

Highlights of Exit Strategies for Angel Investors – Part 1:

  • My background to put my comments in perspective.
  • Organized angel investing is still quite new – only ten or twelve years old.
  • Successful investing requires two things – buying right and exiting well – a lesson I learned late (and expensively).
  • There is lots of doom and gloom about exits in the media – and it’s true that the big exits aren’t happening very often now.
  • The big ‘new story’ is the large number of small and medium size exits – and they’ve held up well during the recent recession.
  • Most private company M&A transactions are under $20 million – and probably under $15 million.
  • Big companies know they aren’t good at new ideas or startups, but they are good at growing values from $20 million to $200 million.
  • These big companies have lots of cash – many are spending more on M&A than on R&D. It’s the best way for them to grow.
  • Even for the very biggest companies – a $100 million acquisition is already out of their ‘sweet spot’.
  • The ideal size for big companies to acquire is $10 to 30 million.
  • Companies are being acquired earlier and earlier – often just a couple of years from start-up.

Part 2 of this video is online here.

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.
Part 2 of this video is online here.

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