# Exit

Concept · [Fundraising and equity](https://ecosystem.samcarlton.com/fundraising)

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

The moment when [founders](https://ecosystem.samcarlton.com/founder) and investors can turn their [shares](https://ecosystem.samcarlton.com/equity) 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](https://ecosystem.samcarlton.com/founder), [employees](https://ecosystem.samcarlton.com/contractor-vs-employee) and investors are paid for the [shares](https://ecosystem.samcarlton.com/equity) they hold.

## Connects to (8)

- [Venture capital](https://ecosystem.samcarlton.com/venture-capital): Money that professional investment firms put into young companies in exchange for equity.
- [Equity](https://ecosystem.samcarlton.com/equity): Ownership in a company.
- [Valuation](https://ecosystem.samcarlton.com/valuation): What the company is agreed to be worth for the purpose of an investment.
- [Liquidation preference](https://ecosystem.samcarlton.com/liquidation-preference): A term that sets who gets paid first, and how much, when a company is sold or shut down.
- [Fiduciary duty](https://ecosystem.samcarlton.com/fiduciary-duty): A legal duty to act in someone else's best interest and not your own.
- [Limited partner](https://ecosystem.samcarlton.com/limited-partner): An investor who puts money into a venture fund.
- [Private equity](https://ecosystem.samcarlton.com/private-equity): Investment firms that buy stakes in, or all of, established private companies, usually aiming to improve them and sell later at a profit.
- [Capital gains](https://ecosystem.samcarlton.com/capital-gains): The profit from selling an asset, such as stock or property, for more than it cost.

> 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.

Map view: https://ecosystem.samcarlton.com/exit