/ˈɛksɪt,ˈɛɡzɪt/ noun
A conscious plan to dispose of an investment in a business venture or financial asset.
“It’s never too early to think about an exit strategy.” Sihle Gumede
It can feel counterintuitive to think about the investor exit whilst you build your investable business. Once you get over this, you’ll realise that it only makes sense to have the investor exit strategy top of mind as you articulate your pitch. An investor wants to know that they will be able to make a return on their investment and so being able to show the assumptions you have made, including some calculations and realistic plans will serve you well.
Meet Sihle Gumede, who is a Principal at Sanari Capital. Sihle packs a punch as she clarifies what is meant when investors talk about an exit strategy. This part of the raise process can quickly become overwhelming because of the dizzying array of acronyms - ROI, IRR.. - so let Sihle set you straight on this episode of Let’s Get Funded.
Here are the questions we asked Sihle:
What do we mean by investor exit?
Why is it important to describe an exit strategy?
What is an investor expecting to find out from an investor strategy?
What is IRR?
What are the kinds of returns an investor expects at the time of exit?
What kind of relationships are needed for a successful exit?
Watch the episode here:
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About Let’s Get Funded
Branson Centre has partnered with the UK SA Tech Hub, an initiative of the UK Government, to create our on-demand series ‘Let’s Get Funded’, for founders looking to get funded. We connected with South Africa's most experienced and inspiring female finance professionals to discuss investor readiness. Let's Get Funded challenges traditional financial and investment content norms with a conversational 9-part series of on-demand content.
In partnership with:
Crafting a Convincing Pitch
The Crucial Role of Exit in Attracting Early-Stage Investment
Effective storytelling plays a pivotal role in capturing the attention of investors. Therefore, it is vital to address the following questions during your pitch and conversations with potential investors. Equally important is to substantiate these aspects through compelling evidence for investor returns and ultimately investor exit.
By addressing these key areas and supporting them with compelling evidence, you will significantly enhance your pitch and attract potential investors.
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