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Exit Trends for Venture Backed Companies

Exits through M&A far surpass IPO exits.

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Exit Trends for Venture Backed Companies

When starting a company and choosing to raise money from a venture capital firm, there are many unpredictable events that lie ahead for the company. However, one very predictable event for any venture backed company that does not fail is that it will eventually be sold.

Venture capital firms are in the business of investing money to help companies grow, then selling those companies so they can realize a return on their investment. Hot IPO’s get a lot of press, so most new entrepreneurs think they will achieve an exit through an IPO.

However, the numbers tell a different story about exits. As the chart below shows, the number of venture backed companies in the U.S. that are sold through M&A transactions is six times larger than those sold through IPO’s.

M&A vs IPO Exits graph

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About Waypoint Private Capital

Waypoint Private Capital is an investment banking firm that educates and advises middle-market, privately held companies through critical stages of their business' life cycle. Waypoint helps business owners and entrepreneurs sell companies, buy companies, raise equity and debt capital for growth and recapitalization, and plan for a successful exit from the business.

To learn more visit or call us at 608.515.3354 or 918.633.2647 and speak with a Waypoint Private Capital expert.

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Steve Sprindis is co-founder and managing director of Waypoint Private Capital. © 2015 Waypoint Private Capital, Inc. All Rights Reserved.

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