Exit Strategy

Share This
« Back to Glossary Index
  • Rating:
  • (1275)

The method by which a venture capitalist or business owner intends to get out of an investment that he has made. In other words, the exit strategy is a way of “cashing out” an investment. Examples include an initial public offering (IPO) or being bought out by a larger player in the industry. (Source: InvestOpedia)

Exit Strategy (Wikipedia)
For other uses, see Exit strategy (disambiguation).

An exit strategy is a means of leaving one's current situation, either after a predetermined objective has been achieved, or as a strategy to mitigate failure. An organisation or individual without an exit strategy may be in a quagmire. At worst, an exit strategy will save face; at best, an exit strategy will peg a withdrawal to the achievement of an objective worth more than the cost of continued involvement.

About David Rashty

David Rashty, an entrepreneur and one of the early web pioneers, has over twenty years’ experience as a CTO and a CEO. David is the funder and CEO of CreativeMinds which focus on WordPress and Magento products.