<ul data-eligibleForWebStory="false"><li>Companies in the venture ecosystem exit in three primary ways: conversion to common shares, VC involvement post-IPO, and merger or acquisition (M&A).</li><li>M&A is the most common exit route, involving initial contact, due diligence by potential acquirers, negotiation, and VC support throughout the process.</li><li>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.</li><li>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.</li></ul>

Sourcing and Exits-2

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