Early Exits Workshop – Banff

BY Basil Peters

+This Early Exits Workshop was presented at the National Angel Capital Organization (NACO) Annual Summit in Banff, Alberta.

NACO Summits are usually around 500 attendees. Most people are from Canada, but international attendance increases every year.

Key Points from Part 1 – Early Exits

  • Seed and startup investing is changing
  • The “Traditional VC model” is broken+
  • Startup costs are much lower than in the past
  • Big business has chosen acquisition over R&D
  • Increasingly, angel groups seek angel-only deals
  • This workshop addresses improving angel returns/li>
  • By increasing the percentage of our successes<
  • “Until the exit we’re all just donors!” John Houston
  • Financing Today’s Startups
  • Angels and VCs growing apart
  • Angels or VCs but not both
  • When do VCs make sense?
  • Angel syndication – many companies raising >$10 million
  • A new angel model

Key Points from Part 2 – Exit Timing, Exit Strategy and Term Sheets

  • As soon as you prove the model is often the best time to sell
  • Exiting in internet time
  • Ideal exit timing
  • Term sheets can kill companies
  • Vesting is very important
  • Being fair and equitable
  • Vesting – linear is a plan to fail
  • Pscychological vesting and the equity effect
  • Vesting protects the founders and confirms alignment

Key Points from Part 3 – Exit Execution

  • Companies should be sold, not bought
  • Steps to completing an exit
  • The ideal exit team
  • Why the CEO should not lead
  • Exit Coach – a new idea
  • Selecting an M&A advisor
  • Failure is quite common
  • The exit process
  • Cross border exits

The PowerPoint for this talk is online here