Exit Mechanisms for Venture Capitalists

sunandaC

New member
The venture capital process ends with one of the following five exit mechanisms



Initial Public Offering (IPO) is when the portfolio company's shares are offered in a public sale on an established share market., which is not the case in VCs IPO.

Acquisition (or trade sale) the entire Portfolio of the Company is sold to another company.

Secondary sale is when the venture capital firm’s sell their part of the portfolio company’s shares only.

Buyback or MBO either the entrepreneur or the management of the firm buys back the VC's shares of the company.

A Reconstruction, Liquidation or Bankruptcy of the portfolio company.
 

rosemarry2

MP Guru
The venture capital process ends with one of the following five exit mechanisms



Initial Public Offering (IPO) is when the portfolio company's shares are offered in a public sale on an established share market., which is not the case in VCs IPO.

Acquisition (or trade sale) the entire Portfolio of the Company is sold to another company.

Secondary sale is when the venture capital firm’s sell their part of the portfolio company’s shares only.

Buyback or MBO either the entrepreneur or the management of the firm buys back the VC's shares of the company.

A Reconstruction, Liquidation or Bankruptcy of the portfolio company.

Hi there,

I am also uploading a document which will give more detailed explanation on Mechanisms of Venture Capital Co-Investment Networks - Evolution and Performance Implications.
 

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