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An exit strategy is a plan for a founder or an investor to sell their stake in a company and make a return on their investment. It's a crucial part of the investment planning process, as it provides a clear path to liquidity.
Exit strategies can involve various paths like an initial public offering (IPO), a sale to a strategic acquirer, or a management buyout. The choice of exit strategy depends on factors such as the company's maturity, market conditions, and the strategic goals of the founders and investors.
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