The founders’ strategic plan for selling their ownership/the broader business for the purpose of securing investor returns and/or enabling the next phase of company growth. The typical exit strategy for startups is a merger or acquisition by a strategic (someone who benefits synergically from the purchase) or financial (private equity firm, family office, etc. who is buying primarily for financial return) buyer. The other option generally referenced is to go public by executing an initial public offering (IPO) offering public trading of the stock, enabling new and old investors to buy/sell.
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