It’s All About the Exit…

I’ve been spending a fair amount of my time these days working through exit scenarios and mechanisms for a couple of reasons so I thought I’d write a quick blurb on my thoughts.  First, for the uninitiated, most (if not all) VCs invest for one simple reason: “The Exit”.   “The Exit” is the euphemism given to the event wherein the investors are able to sell their shares of a particular company for money and, if done correctly, a lot of it (a.k.a. a liquidity event).  While it is certainly nice to think that we are creating companies of great value that are changing the world and creating new jobs, the reality is that those are merely a means to an end.  Simply put, we are in business to make money…period.  Second, to the extent humans acquire knowledge of a subject matter through authority (i.e., experts, school, state, church, etc.) and/or experience, there is an upcoming opportunity to obtain such insight.  The Orange County Venture Group (”OCVG”) is holding an event 7-9am on April 15th at the Westin South Coast Plaza that is essentially a case study on the Entropic [NASD: ENTR] IPO that is worth checking out.  You can learn more about the event and register to attend here.  Finally, it never ceases to amaze me just how much all capital markets (public AND private) seem to be driven by two simple emotions: Greed and Fear.  Never is this fact more apparent than in the middle of an exit.  Hope to see you on the 15th.