For a long time now, startup founders who couldn’t raise round of funding had to boot strap it all the way or simply give up on their ventures for lack of a better exit option. A new platform dubbed Exitround, has launched which claims is “a private, anonymous marketplace for founders to discreetly explore strategic acquisition opportunities.”
Better Exit Option
Founded by Jacob Mullins of Shasta Ventures, “Exitround was created out of the current market need for founders of early stage tech startups to more easily evaluate all of their options when considering the next stage for their business.”
As a soft-landing for founders, Exitround lists ventures discreetly and anonymously, shows interested buyers and allows the founders to choose which buyers they talk to.
According to the Mullins, due to increased early-stage funding, hundreds or thousands of smart, dedicated and hungry startup teams are out building incredible products. And as the early-stage funding increases, there have been cries of a finance crunch as several startups struggle to raise on funding to scale their operations and for those that raise, the amount is not enough.
Quitting Is An Option
The founder did not mean to be pessimistic.
Stats from SBA show that seven out of 10 new firms survive at least 2 years, half at least 5 years, a third at least 10 years, and just a quarter stay in business 15 years or more. Most of these companies close shop due to expansion capital and management skills leading to double loss-both to the founders and their teams and the seed investors.
But as they close shop, large technology firms and other startups are in search for hot talent. Many of these companies look at strategic acquisitions to fill their expertise gaps quickly in exchange of significant sums of money.
Enlighten Founders On Process
Exitround was therefore meant to be a dating zone for exiting startup founders with matching potential admirers and allows founders to discreetly explore their strategic value by talking with potential acquirers. Exitround is also meant to enlighten founders on the entire acquisition process.
“There are resources ad nauseam teaching entrepreneurs how to fundraise, but there is very little information about the process, expectations, and potential outcomes of early stage tech startup acquisitions,” the founder said and added, “Exitround will pull the covers off of this entire process through both online and offline content that will help educate founders on what to expect.”