Early Exits Workshop – Silicon Valley – Part 2

BY Basil Peters

Sponsored by the Angel Capital Education Foundation and the Angel Capital Association
presented at the Angel Capital Association National Summit, Silicon Valley May 5, 2010

Part 2 – Exit Strategy

Part 2 PowerPoint PDF here

Part 2-1:

  • Focusing on the exit is healthy and why exits are not well understood
  • Contrary to popular wisdom, companies should be sold not bought – the difference is a lot of money
  • The exit is just another business process (the most important one)
  • How to plan for an exit, the first step is to determine what type of company you have
  • Seven steps to plan for a successful exit

Part 2-2:

  • Angels actually finance 27 times more startups than traditional VC funds
  • The importance of a clear exit strategy before contacting the first external investor
  • Checking the DNA compatibility of prospective investors before they invest
  • Angel syndication – companies are now raising $5 to 10 million angel investors
  • The importance of term sheets in planning for successful exits
  • Why share and option vesting is critically important to company success
  • The challenges in building good quality boards and how that is affecting term sheets
  • The Dan Rosen “Preferred Light” term sheet – a new standard for angels

Part 2-3:

  • Angels as financial partners – how angels can help entrepreneurs more
  • Angels can help the most with financing, structuring, governance and exits
  • Other videos on planning exits

Part 3 is online here.

Many of these lessons are described in my new book on exit strategies for entrepreneurs and angel investors – www.Early-Exits.com.

If you enjoyed this video, you might also like Don’t Blow the Biggest Deal of Your Life, Early Exits – Your Golden Opportunity or Start at the End – Your Exit Strategy.