Exit Strategy

Noun · Startup & VC

Definitions

  1. The plan or likely path by which investors and founders may eventually realize returns, such as acquisition, IPO, or sustained cash-generating independence. A credible exit strategy matters because startup capital usually expects liquidity at some point.

    In plain English: The plan for how owners and investors may eventually cash out or gain liquidity.

    Example: "The product vision was exciting, but investors still asked about exit strategy."

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