Numerous pitch decks I evaluate have a slide that basically shouldn’t be there: the exit technique slide. Your slide deck ought to solely have an exit technique slide if you happen to’re operating a really late-stage firm that’s about to IPO, and even then, you most likely wouldn’t have it as a slide on a funding deck however as a complete, separate IPO plan. As an early-stage startup, it’s downright nonsensical, and it shouldn’t be a part of your pitch deck in any respect.
To plenty of founders, an exit — or a “liquidation occasion,” because the authorized buffs are likely to discuss with it — is the massive pot of gold on the finish of a really lengthy and arduous journey. The identical goes for buyers; when there’s an acquisition or a public itemizing, that’s how everybody will get paid. Furthermore, a number of the outdated pitch deck templates which are floating round on the web have an exit technique slide on them, so it is smart that individuals are nonetheless making this error.
DailyTech+ is having an Independence Day sale! Save 50% on an annual subscription right here. (Extra on DailyTech+ right here if you happen to want it!)
Two issues are true: One is that the most effective corporations are purchased, not bought. It’s unlikely that upfront precisely who shall be all in favour of shopping for your organization. Second, your job as a founder is to construct the most effective firm you presumably can.
Making choices early on to assist form the corporate into one thing somebody may wish to purchase merely doesn’t make sense; it makes you blind to a number of the different choices and alternatives that may current themselves.