venture capital exit strategies

Venture capital exit strategies are methods through which investors realize their profits after funding a startup. Common strategies include an Initial Public Offering (IPO), where a company sells shares to the public, allowing investors to sell their stakes. Another option is acquisition, where another company buys the startup, often resulting in a cash payout for investors. A secondary sale occurs when investors sell their shares to other private investors. These strategies aim to convert the initial investment into profit, usually after several years of growth and development of the startup.