How do you plan your exit strategy from day one with your VC partner?

2 Communicate your vision

You should communicate your vision and expectations for your exit strategy with your VC partner early and often. This can help you build trust, transparency, and alignment with your investor and avoid misunderstandings or misalignments later on. You should also listen to your VC partner's perspective and feedback, as they may have valuable insights, connections, or experience to help you achieve your desired outcome. However, you should also be prepared to negotiate and compromise, as your VC partner may have different interests, timelines, or exit criteria than you.

3 Evaluate your progress

You should regularly evaluate your progress and performance against your exit strategy and adjust accordingly. You should track and measure key metrics and milestones that indicate your readiness and attractiveness for a potential exit, such as revenue, growth, profitability, market share, customer retention, product innovation, competitive advantage, and so on. You should also monitor the market trends, opportunities, and challenges that may affect your exit prospects, such as demand, supply, competition, regulation, innovation, and so on. You should share your progress and updates with your VC partner and solicit their feedback and support.

4 Explore your opportunities

You should be proactive and open-minded about exploring your exit opportunities and evaluating your offers. You should not wait for the perfect deal or the perfect timing, as they may never come. You should also not be afraid to say no or walk away from a deal that does not meet your expectations or align with your vision. You should leverage your network, your VC partner's network, and your advisors to identify and approach potential acquirers or buyers, and to negotiate and structure the best terms and conditions for your exit.

5 Prepare for the transition

You should prepare for the transition and the post-exit scenario, both for yourself and for your company. You should plan ahead for the legal, financial, operational, and cultural aspects of the exit process, such as due diligence, valuation, taxation, governance, integration, retention, and so on. You should also consider your personal and professional goals and aspirations after the exit, such as staying on as an employee or a board member, starting a new venture, joining another company, pursuing other interests, and so on. You should discuss these matters with your VC partner and seek their advice and guidance.

6 Celebrate your success

You should celebrate your success and acknowledge your achievements, both for yourself and for your team. You should also thank your VC partner and other stakeholders who supported you along the way. Exiting a venture-backed company is a rare and remarkable feat that requires hard work, dedication, resilience, and vision. You should be proud of what you have accomplished and learned, and use it as a springboard for your next adventure.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?