Exit Early Exit Often Keynote Speech Part 1

BY Basil Peters

‘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.

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.