Liquidity exit can be defined as a situation whereby a Investor decides to transfer some of his or her assets into cash. The liquidation of assets is needed in order to raise money which can be used for income generating purposes.
Professor Hans - "Liquidity Exit"
Learn more what is Liquidity Exit
When planning the future of the startup you're building, especially if you're approaching investors.
You need to think about the right message around exit.
That is when you and or others get out of the company.
Think of the best interest of the shareholders, the company, and you personally.
First-time entrepreneurs tend to blend these three viewing them as one and the same, but they are not. It may be that the investors need their money returned with an increase, no later than in four years. The company could achieve its greatest potential in year 10, and you would be happy to stay and work in the venture until you are 100 years old.
When an investor asks you a question about exit or liquidity, listen carefully to the wording.
What is the exit is a very different question from what is your exit? Which is different from what is my exit?
If they ask you about exit, and you think they'll be impressed by your passion and commitment. When you look them in the eye and say something like, I am so committed to this venture that I can't see myself ever doing anything else. I plan to stay with this company forever.
Investors cannot stay in this investment until you are a little old person, they need to return profit to their investors and make money themselves.
A better response might be something like, we would build the company for healthy long-term growth so that we would be attractive to either acquisition or recapitalization inside of a time frame that best suits our investors' timing.
With external investors definitely do demonstrate long-term commitment, but let them know that you will protect their best interests when the time comes.
Are you part of an innovative startup and interested in joining Hyper Accelerator?
We are looking for the next big startup
Use this section to explain to potential students the value of your offering. Great copy shows your audience how their life might look after working with you. Start by identifying the problem you're solving. Next, present how their life will be different with the solution you’re providing. Finally, explain why you’re uniquely positioned to provide this solution.