Sanjay Mehta | Inc42
It’s not necessary to do extraordinary investments to get extraordinary exits
It’s said that exit ignorance while investing in startups is not bliss; it’s rather a very expensive affair. For entrepreneurs, creating an exit strategy for themselves should never begin at a very early stage but for investors, it’s a must
Exit opportunities come in different forms, but it is important that the founders are cognisant about providing a return on investment.
Decoding The Role Of Angel Investors
An angel investor’s role and relationship are time bound with any startup. I personally have been a technology entrepreneur with two successful exits.
Now I do active angel investing with 50+ portfolio companies hence, the commentary here is with that perspective. Lead investor interaction with startups play a crucial role in value creation which impacts the exit returns significantly:
1-2 interactions yearly results 1.3X returns 1-2 interactions monthly results 3.7X returns
Entrepreneurs should choose active angel investors who have experience in managing exits and their ability to sell the startup. For entrepreneurs, it is one of the most vital decisions as it impacts their future rounds of investments in the company.