exit-options

Vocabulary Word

Definition

Exit options refer to the various strategies available to an entity, such as an investor or business owner, for withdrawing or reducing their stake in a business venture, typically with the intention of realizing a gain or minimizing a loss.

Examples in Different Contexts

In the startup ecosystem, 'exit options' include scenarios in which founders sell their startup to a larger company or go public. A startup mentor might suggest, 'Startups should plan for exit options carefully to ensure the founders and investors achieve their desired outcomes.'

Practice Scenarios

Tech

Scenario:

With the startup's growth stagnating, we should look at recalibrating our investment approach.

Response:

It's important to ensure the venture remains viable. We should discuss our exit options.

Impact

Scenario:

Given the recent changes in the mission-driven investment landscape, we may need to rethink our current strategies.

Response:

That's a good point. We should consider exit options that continue to align with our impact objectives.