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> I don't think elsewhere it's called an "exit strategy" to seek financing I don't think that's how it is used in this context either. A lot of early stage mo

by ska 5y ago

> I don't think elsewhere it's called an "exit strategy" to seek financing I don't think that's how it is used in this context either. A lot of early stage money in tech startups is there for the short(ish) term, and they definitely want to get their money out (i.e. "exit") at some point, not build a business over decades. It's their usage of "exit", and the need to have a strategy for it, which drives the usage more broadly, I think. Agree it can be a bit confusing by confounding the above needs.

dundarious 5y ago
Right, it's the focus on "exit" also for founders (who also run the business) that puzzles me. As for the "exit=financing" association, I made that based on your comment: > > It's a jargon term not used in the entrepreneurial side of most other industries. > That's because in most of the industries you are thinking of, you can get traditional financing. > The need for an exit of some sort follows from the financial structure. But I think I misunderstood and you were saying something more like that the lack of traditional financing leads to a form of financing that necessitates selling the business wholesale.
- ska 5y ago
  > But I think I misunderstood Yes I should have been clearer. Re founders there is a tension: They often want to both maintain control (i.e. equity) and realize some $$ from building the company. A liquidity event of some sort is often seen as the best way to do this, especially if they've been lean on salary for a decade at that point, which is often the case.