Define your exit strategy

Exit Strategy Investing

Recently at the Westchester Angels we screened a promising company that eliminated themselves with one phrase. When we asked how the investors would make money the presenter responded that we should ask our financial advisors. That was the wrong answer and the end of the conversation.

Early stage investors know how they will make their money: through exits. Given the risks in this stage of investing, angels need to aim for a 30 times return on their investment. This means that a company needs to grow quickly and go through a liquidity event, generally a sale, before the investor sees any money at all.

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