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Sourcing and Exits-2
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Sourcing and Exits-2

  • Companies in the venture ecosystem exit in three primary ways: conversion to common shares, VC involvement post-IPO, and merger or acquisition (M&A).
  • M&A is the most common exit route, involving initial contact, due diligence by potential acquirers, negotiation, and VC support throughout the process.
  • Bankruptcy and wind down are unfortunate outcomes for companies unable to achieve scale or secure further financing, with VCs playing a role in these difficult decisions.
  • Secondary sales of private company shares have emerged as an alternative liquidity avenue, with VCs' opinions influencing potential impact on stock prices and tax considerations.

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