exit-strategy

Vocabulary Word

Definition

An 'exit strategy' in business or investment is the way you plan to leave, or 'exit', your investment or business venture when it reaches your set goals or if it isn't working.

Examples in Different Contexts

In venture capital, an 'exit strategy' involves planning how to sell the investment in a startup to get the highest possible return. A venture capitalist might explain, 'A clear exit strategy is crucial for us to decide on investing in a startup, as it outlines the path to profitability.'

Practice Scenarios

Academics

Scenario:

With ever-changing industry demands, it's important to align academic pursuits with potential career paths.

Response:

Yes, my exit strategy from college has been to build skills that directly apply to the flourishing AI industry.

Tech

Scenario:

The recent acquisition spree by tech giants may cause a shift in market dynamics.

Response:

Indeed, if our startup reaches a lucrative valuation, our exit strategy might involve being acquired.