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Identify and discuss the various exit strategies that investors may use and the implications for commercialization - Essay Example
Pages 3 (753 words)
Identify and discuss the various exit strategies that investors may use and the implications for commercialization Introduction A venture capitalist is an institution that would come forward to invest in companies or projects that have just started and need a seed capital as it cannot go to the public for collection of funds because the scale of operation is not so big…
In most of the cases, these kinds of investors would look for an investment opportunity for shorter terms like 3-7 years. The Angel investors are also another category who would want a high return from their investments but they might stick to their investments for longer periods of time. However, both of these categories would look for exit strategies that they may have in front of them. Initial Public Offering A company can go to the public to raise funds when it is big enough to guarantee its credibility and the people would be interested to buy the shares of the company through registered stock exchanges. This would enable the investors get their money back almost instantaneously as soon as the company collects the money. Most of the investors believe that the startups where they are investing in would have the capacity to go to public within 5 years of their inception. But this may not always be feasible because a company needs time to grow and sustain. Thus the venture capitalists have to look for more practicable strategies. ...
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