Skip to content
English
  • There are no suggestions because the search field is empty.

What is an Exit? | Growceanu Help Center

What is an Exit?

T
Written by Tic Nica
Tic Nica

An exit refers to a liquidity event through which investors can convert their equity holdings into cash or publicly tradable shares.

Common exit mechanisms include:

  • Acquisition by a larger company

  • Merger

  • Initial Public Offering (IPO)

Acquisition by a larger company

Merger

Initial Public Offering (IPO)

Returns are realized only at the point of exit. Until then, reported valuations are indicative and not equivalent to realized gains.

Because exits are uncertain in timing and outcome, investors must treat startup equity as long-duration capital with uncertain liquidity.