11 Quotes by Basil Peters

Every company needs an exit strategy and an exit plan. Ideally, the exit strategy should be agreed upon by the founders before the first dollar of investment goes into the company.

Today, the optimum financial strategy for most technology entrepreneurs is to raise money from angels and plan an early exit to a large company in just a few years for under $30 million.

From the time that all of the sales collateral is complete until the cash is in the bank, the exit process can take as little as 4 to 5 months and as long as 18 to 24 months.

Exits are the best part of being an entrepreneur or investor. It’s when we get financially rewarded for all of the creativity, hard work, investment and risk we put into our companies.

It’s much easier to understand the pricing mechanisms for exit transactions if you look at it from the perspective of the professionals doing the business.

As VCs invest more and more money in each company, they have to wait longer and longer before they can exit.

It is highly desirable to have all the due diligence documents in the electronic data room before the rest of the selling process gathers momentum.

VC bias toward swinging for the fences means companies that could have exited easily in the $20 to 30 million range will end up being ‘ridden over the top’ and eventually worth much less – or possibly nothing at all.

Angels also often want to contribute more than money to a young company. Angels have the experience, and inclination, to be great mentors and valuable directors.