Glossary · Outcomes
Exit
When owners turn equity into cash or tradable stock — usually through a sale (M&A) or going public (IPO). Investors talk about exits because that is how they return money to their own backers.
Related: Initial public offering (IPO) · Acqui-hire · Liquidation preference · Secondary sale
A bit more nuance▾
- Most startups never exit huge — many become good small businesses or shut down.
- Exit timing affects employees, taxes, and who gets paid first via preferences.
Go deeper▾
Discussion questions▾
- Would you rather sell early for sure or swing for a bigger outcome?
- Who besides founders cares most about your exit timeline?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.