When looking at investment readiness, the last thing an entrepreneur wants to think about is how their start-up or project will end. Yet, one of the first things a potential investor (equity) asks about is the company’s exit strategy. The answer the entrepreneur will give can make or break their ability to get an investment.
On March 23, 2021, InnoRate hosted a 1-hour InnoRate webinar on investors’ strategies and options with the expert coach Dr Frederic Daumas, founder and president of Upperion, a French based organisation investing in B2B innovations.
During his presentation, Frederic delved into the investors’ strategies and options looking at what type of exit strategies appeal the most to what type of investors. As Frederic said, “love does not last forever and similarly investors need an exit strategy at a certain point”.
The webinar started off by showcasing the reasons why investors need to exit. Frederic first talked about the origin of the need of an exit strategy by looking at the type of investors and the timing according to which they invest in a venture. Depending on the growth level of the start-up, the company has different needs and options for funding. On the other hand, business angels, venture capitalists and corporate VCs have their own characteristics, readiness to take on risks and duties that influence their investments and exit strategies.
Afterwards, Frederic presented the type of exit expectations by stage, categorising investors according to the percentage of return they expect to gain. After introducing the different exit scenarios that are defined by the theory, he provided the relevant figures describing what happens in reality. Furthermore, he presented the different types of entry conditions and how these impact exist strategies.
It was a highly successful webinar based on the audience response, with a very interactive Q&A session – “An excellent insight into the world of investment and exits”
You can watch the full webinar and the Q&A session that followed, as well as any other webinar of the investment-readiness series, by clicking here.