Investor Presentaiton

Exit Strategy • Acquisition: Most likely exit option for companies • • • • Name potential companies (any unique relationships with them?) Name types/categories of companies that could acquire you Why would they acquire you, how do you fit into their strategy? Why won't they try to build it themselves? Financial Buyer: Will your company generate excess cash flow that could make it attractive to financial buyers to generate a return? Often buys for lower multiples (not as high exits), as no strategic value, may flip company and sell it in a few years IPO: The least likely exit for a company, but a possibility. Often not preferred to founders or investors compared to top two choices, due to required holding period (~6 months) after IPO and volatility. Preferred exit strategy if you're building a really big stand alone company (instead of a bolt on business that's easier to acquire) and no good acquirers exist that could pay enough to acquire it (as future value is far greater) - Note: ~80% of VC exits are via acquisition, only ~20% IPO 24

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