Exit

Also called: acquisition, acquired, IPO, going public, liquidity event, buyout

The moment when founders and investors can turn their shares into cash. This is usually because another company buys the startup, or because the startup begins selling shares on a public stock market.

For example: A larger software company buys a startup. The founders, employees and investors are paid for the shares they hold.

Connects to 8

Venture capital Concept
Equity Concept
Valuation Concept
Liquidation preference Concept
Fiduciary duty Concept
Limited partner Concept
Private equity Concept
Capital gains Concept

This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.