Our host, Dangerfield Moore, is joined by Mark Bowles, serial entrepreneur and founder of EcoATM, and Amy Nguyen-Chun, Professor of Strategy at the Rady School of Management, to discuss the idea and strategy behind Engineering Your Exit. It is so much more than an exit strategy. Listen in and find out why, after 7 successfully venture-backed start-ups, Mark Bowles has found Engineering Your Exit to be so much more than a buzzword.
- Local Angel-funding sources:
- Local Incubators and Accelerators:
“Whether you like it or not, when you take other people’s money, you’re an investment vehicle” Your goal is exit as positively as you can.
1 out of 10 start-ups fail. Of those successful, 95% end in a merger and acquisition (M&A). only 5% end in an initial public offering (IPO).
Don’t just know how you want to exit, engineer your exit to increase your odds of success.
How to Engineer Your Exit (checklist)
Identify as many companies are you can about who will care (who will buy)?
- Will it be a merger and acquisition (M&A) or an initial public offering (IPO)?
- If M&A what companies would be interested?
- Who are the people at those companies who can help you get closer?
Determine whether your business will scale to a point where:
- It will be an attractive size…
- It will align with the company’s roadmap…
- It will be the best viable option on the market (compare to competitors)…
Assess the company’s “M&A” style:
- Are they generous when buying?
- Do they kill acquisitions after purchase? (eliminate competition or poorly manage integrations)
- How do they leverage their power in a negotiation?
Bring your exit targets close but don’t let them have control (techniques include):
- Joint projects/promotions
- Board or advisory board positions
- Licensing technology/IP
- …and more
Lastly, have multiple buyers.
Angel Investors Statistics:
Angel investors can increase the odds of return by:
1.3 x if start-ups interact one to two times a year
3.7 x if start-ups interact one to two times a month
They achieve this by offering resources, advice, and cash injections.
On average Angel investors receive a 2.5 x return on investment from their portfolio. If 1 out of 10 businesses fails, this means Angels will seek around a 25% return from each individual investment.
Are you interested in becoming an Angel investor? Check out these Angel groups:
- Tech Coast Angels – San Diego
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