Startup Funding Espresso -- Alignment for an Exit
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Investors should gain alignment with the startup about the exit before making the investment. This includes the size and timing of the exit. There needs to be some clear thinking and research about who will buy the company and how much they will pay.\xa0\xa0 The investors and the startup need to work together to achieve the exit. One of the biggest impacts on the exit for early-stage investors is follow-on funding. It\u2019s important to gain alignment on the subsequent financing rounds required and the impact it will have on the early investors. It\u2019s often the case the startup is overly optimistic and comes back later asking for additional funding.\xa0 Also, discuss the path to achieve the exit - will the company grow organically or will it push aggressively for growth? It\u2019s important to maintain communication about the exit strategy and discuss how the company is on track for it or not.\xa0 Follow-on funding brings terms and valuations that can diminish the early investor\u2019s position and ultimate exit. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group Music courtesy of .