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title: What is an Exit? | Growceanu Help Center
description: Growceanu Help Center
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# What is an Exit? | Growceanu Help Center

### What is an Exit?

T

 Written by Tic Nica 

February 19, 2026Tic 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.

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