Planning an exit strategy is often a box to tick in a startup business plan. But when reality hits, do startups actually stick to it? Or does the day-to-day grind of building a business push those plans aside? In this article, we explore this in depth—using 30 critical stats as a base, each of which uncovers the truth about how founders think about, plan, and execute exits. Let’s dive into what the numbers really mean and what you can learn from them.
1. 70% of startups include an exit strategy in their initial business plan
Including an exit strategy in a business plan is fairly common. When founders first draft their pitch or business model, 7 out of 10 of them make sure to jot down how they might exit—usually through an acquisition or IPO. It’s often a section written more for investors than for operational planning.
But here’s the catch. Most of these plans are vague. They say things like “plan to be acquired by a larger player” or “aim to IPO within 5-7 years”—but lack real detail. That’s okay in the beginning, but as the company grows, that lack of depth becomes a problem.
If you’re a founder, don’t treat your exit strategy like filler text. Start by thinking: who might want to buy your business and why? What would make your startup attractive to a larger company? Think about your revenue, customers, or technology—those are key drivers. Map out the profile of an ideal acquirer or buyer.
Also, make sure your financial model supports the exit. If your business is capital-intensive and unlikely to turn a profit for years, certain types of exits won’t make sense. So align your exit plan with your business model.
And here’s something founders forget: your exit doesn’t just impact you. It affects your team, your customers, and your investors. So write it like a real plan, not just a bullet point.
2. Only 30% of startup founders actively update their exit strategy over time
The startup world changes fast. Markets shift. Competitors emerge. New technologies disrupt old ones. Yet, only 3 in 10 founders actually revisit and revise their exit strategy as their business grows.
Why does this matter? Because the plan you made in year one may not make sense in year three.
Maybe you wanted to get acquired, but now you’ve built a loyal customer base and could go public instead. Or maybe your product took off in a niche that you didn’t expect.
If you’re running a startup, schedule a check-in on your exit strategy at least once a year.
Tie it to a milestone like the end of your fiscal year or your annual investor meeting. Ask yourself: is this still the right exit path? Have my goals changed? Have the market dynamics changed?
Also, look at what similar startups in your space are doing. If several are being acquired by the same few companies, maybe you should focus on making your business appealing to them. If others are successfully IPO’ing, look at their structure and financials to understand what it takes.
An exit strategy is not a set-it-and-forget-it plan. It should grow with your business.
3. 60% of VCs consider a clear exit strategy essential before investing
When venture capitalists invest, they’re not just betting on your product—they’re betting on a profitable end to the story. That’s why 6 out of 10 VCs see a well-defined exit strategy as non-negotiable. They want to know not only how your company will grow, but how and when they’ll get their money back—with a solid return.
If you can’t paint that picture clearly, they’ll move on. But if you can? You instantly stand out.
Let’s talk about how to build the kind of exit strategy that VCs not only respect—but trust.
Why VCs Care So Much About Your Exit
VCs operate on a very specific business model. They raise funds from limited partners (LPs), invest in startups, and aim to return multiples of that money within 7 to 10 years. Your exit is how they do that.
So from their perspective, an exit isn’t a maybe—it’s the finish line.
A startup with no exit plan is a red flag. It signals either a lack of foresight or a misalignment in goals. VCs don’t invest in lifestyle businesses. They invest in scale, growth, and returns.
That’s why showing them a thought-out, realistic, and time-bound exit strategy is often just as important as showing them your product-market fit.
What a VC-Friendly Exit Strategy Looks Like
It’s not about having a slide that says “acquisition or IPO.” That’s far too vague. What you need is a grounded, strategic roadmap that shows:
Your plan B. What if an acquisition doesn’t come through? Could you grow to profitability? Are secondary share sales a viable liquidity option?
Who might acquire you. Not a wild guess—real companies that have a pattern of buying in your space.
Why they’d acquire you. Is it your customer base? Your technology? Your data? Show the value clearly.
When it could happen. Investors need a timeline. Saying “someday” doesn’t cut it. Explain what growth or milestones you’ll need to hit to be exit-ready.
4. 45% of startups fail to execute their planned exit strategy
Almost half of startups that create an exit plan never actually follow through on it. That’s not always due to failure—sometimes the business grows in a different direction, or an unexpected offer comes along. But more often, it’s because the plan was either unrealistic or ignored.
Maybe the company overestimated how much revenue it would make. Or the market for acquisitions dried up. Or the business ran out of money before it could reach a viable exit point.
To avoid this, your exit strategy needs to be grounded in reality. Don’t just plan for best-case scenarios. Build in buffers. Ask: what happens if we grow slower than expected? What if our acquirers go after other players in the space?
More importantly, tie your milestones to your exit. If your goal is to exit at $20 million in ARR, make sure your product, team, and go-to-market plan are aligned with that goal. Too many founders treat exit strategy like a distant dream rather than a real objective.
Execution only happens when the strategy is integrated into your everyday decisions.
5. 25% of startup founders have no exit strategy at all
One in four founders doesn’t even think about exits. They’re focused on building the product, hiring the team, getting users—anything but planning the end.
In the early stages, that seems fine. But as your startup grows, not having a plan can become a serious risk. What happens if a competitor offers to buy you? How do you respond if a major investor wants to know your long-term play?
If you don’t know your own end goal, you’ll be reactive instead of strategic.
It’s okay if your strategy is simple at first. Maybe you’re targeting profitability and want the option of selling in three to five years. Maybe you want to build a family business. Whatever it is, define it clearly.
Start by asking yourself: what’s my ideal outcome? Would I be happy running this company for 10 years, or do I want to cash out sooner? Do I want to stay after the exit, or move on? These questions matter more than you think.
Remember, exit strategy isn’t about quitting. It’s about being prepared.
6. 40% of startup exits occur through acquisition
Acquisitions are by far the most common way startups exit. Around 4 in 10 startup exits happen because a larger company buys them out. This route is especially popular for tech startups, SaaS companies, and teams building niche or innovative products.
An acquisition might sound like a jackpot, but it doesn’t just happen overnight. Companies buy startups for a few key reasons: to acquire customers, to absorb a unique product or tech stack, or to bring in a talented team.
If you want your business to be an attractive acquisition target, you need to make sure one or more of those boxes are checked.
Here’s how to start thinking about it early. First, map out a list of 10-15 companies that could realistically acquire you in the future. These should be businesses in your space that are actively buying smaller startups or ones that would benefit from what you’re building.
Study them. What kinds of companies have they acquired before? What were the deal sizes? What do they value?
Then, work backwards. If Company A only buys startups with $5M in ARR and you’re at $500K, what do you need to do in the next 2 years to be on their radar? Use that to shape your roadmap, pricing model, and growth strategy.
Another often-overlooked piece is relationship-building. Many acquisitions don’t start with a pitch—they start with a partnership, a joint project, or even a coffee meeting at a conference. Build relationships with leaders at potential acquirers now, not later.
7. 15% of startup exits occur through IPO
Initial Public Offerings (IPOs) are often seen as the holy grail of startup exits—flashy headlines, market buzz, and massive valuations. But in reality, only about 15% of startups ever make it to the public markets. That’s a tiny slice of the startup pie, and for good reason.
An IPO isn’t just about raising money—it’s about entering a whole new game with new rules. It’s not the end of your startup journey. It’s the beginning of becoming a public company. And that comes with major responsibilities.
Still, if you’re building a high-growth startup with massive market potential, going public could be the right move. But to make that happen, you need more than ambition—you need a plan.
Let’s break down how to approach IPOs strategically, without getting lost in the hype.
When Does an IPO Make Sense for a Startup?
IPOs aren’t just for unicorns. They’re for companies with:
- Consistent revenue growth (often $50M+ annually)
- A clear path to profitability (or already profitable)
- A large and expanding addressable market
- Strong brand equity and market positioning
- Experienced leadership with a scalable structure
If you’re checking those boxes—or believe you can in the next 2–3 years—it’s worth exploring an IPO roadmap.
But here’s the truth most founders don’t hear: IPOs are less about the product and more about the predictability of your business. Public investors want confidence. They want clean numbers, reliable earnings, and a management team that can handle pressure.
So if you’re aiming for the public markets, focus not just on scale—but on consistency.
8. 20% of exits happen via acqui-hire
An acqui-hire happens when a company buys your startup just to get your team—not your product, not your revenue. It’s more common than most people think. About 1 in 5 startup exits fall into this category, especially in tech-heavy industries.
On paper, this may not sound like a “win,” but it often is. If your product isn’t getting traction or your market changes, a good team can still find a soft landing through an acqui-hire.
The acquiring company gets skilled people, and you get a return on your time and effort.
If you’re open to this path, here’s what to focus on. Build a strong, visible team. Highlight your technical talent or subject matter expertise. Engage in open-source projects, speak at events, write about what you’re building.
You want to be seen as a team worth acquiring.
Also, don’t wait for the business to crash before exploring this. If growth is slowing, or if funding isn’t coming through, reach out to other startups or larger companies early. Many acqui-hires happen quietly through investor networks or founder intros.
It’s not the big exit everyone dreams of—but it can be the right move if your product isn’t taking off and your team is your most valuable asset.
9. 10% of startups dissolve without any formal exit
Not every story has a clean ending. Around 10% of startups just… end. They shut down, return remaining capital (if any), and the team moves on. No acquisition. No IPO. No big news.
That’s the reality for a lot of businesses. Maybe the market dried up. Maybe the team burned out. Or maybe the numbers just didn’t work out. It happens.
If you’re in this spot or worried about getting there, don’t panic—but do plan. Have a wind-down process in mind.
What happens to customer data? How do you communicate with users or investors? How do you handle outstanding debt or obligations?
The key here is transparency. If things aren’t going well, talk to your investors early. Most will appreciate honesty and may even help you explore options like pivoting or finding a buyer.
Also, protect your reputation. How you handle a shutdown will shape how people perceive you going forward. A clean, honest wind-down keeps doors open for your next venture.
Finally, remember: failure is part of the game. A graceful exit, even without a payout, is still experience you can build on.
10. 55% of startups with exit plans never reach the execution stage
You read that right—more than half of startups with exit strategies never actually execute them. That means they either change direction, get stuck, or fizzle out before the plan becomes real.
This stat is a reminder that strategy is just the start. Execution is what matters.
One big reason for the gap is that startups often build plans based on ideal conditions. They assume fast growth, investor interest, and a strong market. But reality brings delays, competition, and cash crunches.
To avoid being in the 55%, start tying your exit plan to real milestones. If you’re aiming for acquisition, what traction do you need to be attractive?
If you want to go public, how much revenue do you need? Create a timeline that connects today’s actions with tomorrow’s exit.
And be flexible. If your original plan stops making sense, pivot it. The best founders treat exit strategy as a living part of the business, not a fixed document from day one.
Also, talk about your exit plan regularly—with your team, your advisors, and your investors. Keep it in the conversation so it stays top of mind.
11. 80% of startups that exit via IPO had a documented strategy from inception
Going public is not something you stumble into. For 8 out of 10 startups that manage to pull off an IPO, they had it in writing from the very beginning. That means they were thinking about public markets, investor relations, financial audits, and scalability before they even had product-market fit.
Why does that matter? Because IPOs require a different mindset. You can’t build casually and then decide to go public later. The level of structure, discipline, and reporting needed takes years to develop.
If you’re even slightly serious about taking your company public someday, it has to reflect in how you build. You need predictable revenue, transparent accounting, scalable systems, and a leadership team that can communicate effectively with the public market.
Start with financial hygiene. Get a good CFO early or at least a fractional one. Invest in strong financial reporting tools. Get your books reviewed annually—even if it’s not legally required yet.
Then think about optics. Going public is also about perception. What story are you telling? How does your company look to the outside world? What’s your growth narrative?
Make sure your board and advisors include people who have gone through the IPO process. Learn from them. Build the discipline now, not when you’re three months from filing an S-1.
Remember, IPO is the long game. Start early, stay consistent, and treat it like a mountain you’re climbing from day one.
12. Only 12% of early-stage startups know the specific buyers or acquirers they are targeting
It’s not enough to say, “We’ll get acquired someday.” That’s not a strategy—that’s wishful thinking. If you’re building a company without knowing who might want to buy it, you’re leaving money, clarity, and opportunity on the table.
Let’s fix that.
Why Most Startups Miss This (And Why You Shouldn’t)
Early-stage founders are often deep in product development, customer acquisition, and fundraising. Thinking about an exit feels far off—almost like planning your retirement while you’re still figuring out how to pay this month’s rent.
But here’s the thing: knowing who your potential acquirers are changes how you build today. It helps you prioritize features, choose marketing channels, and even design your customer base with intention.
When you know who might want to buy your company, you can start shaping your business to be a no-brainer for them.
How to Identify Your Ideal Buyers (Without Guesswork)
Here’s a quick and strategic way to figure out who your real buyers could be.
Build a shortlist.
Narrow it down to 5–10 companies. These are your “exit targets.” No, you don’t need to pitch them now—but everything you do should move you a little closer to being valuable in their eyes.
Start with the ecosystem.
Map out the companies in your space—those directly competing, and those serving the same customers with different products. Look for those with acquisition history or aggressive expansion goals.
Study their M&A activity.
Search news articles and press releases. Who have they acquired in the last 3 years? What types of products, teams, or technology were they after? This gives you patterns to align with.
Look at their pain points.
Think deeply: what are these larger players missing that you offer? It could be your tech, speed of innovation, customer base, or presence in a niche market they can’t easily reach.
Talk to your investors and advisors.
These people often know the M&A landscape better than you. Ask them which companies might be strategic fits and why. They can often provide warm intros or help validate your direction.
13. 65% of exits take longer than originally projected in the business plan
Startup founders are optimistic by nature. But when it comes to exits, most are way off on the timeline. Nearly two-thirds of exits take longer than expected—often by years.
This mismatch can cause real problems. Investors get impatient. Teams burn out. Founders feel stuck. And worst of all, it can lead to poor decisions—like selling too early for too little or chasing an IPO that isn’t realistic.
So how do you plan better? Start by adding a time buffer. If you think you can exit in three years, assume five. Make sure your financial model and runway planning reflect that. Don’t just build to reach the exit—build to last.
Also, stay agile. You may find that your market slows down or competitors raise more money than expected. Factor in delays. Ask yourself every six months: are we still on track for our exit timeline? If not, what needs to change?
One way to keep progress moving is to set “pre-exit” goals. These are milestones that would make you attractive to a buyer or investor: hitting $1M in ARR, getting 100K active users, launching in a key market. Track those, not just the final exit date.
Patience doesn’t mean stalling. It means preparing so you can exit when the timing—and the offer—is right.
14. 35% of founders change their preferred exit method after Series A funding
Once real money gets involved, strategies shift. Over a third of founders change their minds about how they want to exit after raising a Series A round. That’s usually because they now have new stakeholders, better visibility into their growth potential, and pressure to deliver returns.
Maybe the original plan was to get acquired, but with solid funding and traction, IPO starts to look more appealing. Or maybe an IPO was the dream, but now you realize an acquisition is faster and more achievable.
The key here is flexibility. Fundraising opens up options, but it also forces decisions. Talk to your investors early about what kind of exit they’re expecting. Are they in it for the long haul, or do they want a return in 5–7 years?
Also, revisit your exit plan after each major funding round. What’s realistic now that you have more money and a stronger team? What’s the next best path given your momentum?
Don’t feel locked into your original plan. Great founders adapt. What matters is that you keep moving forward with clarity.
15. 50% of startup exits are unplanned or opportunistic
Half of all startup exits aren’t part of some long-term, carefully crafted strategy. They happen because of a surprise offer, a market shift, or a relationship that suddenly turns into a deal. These exits are reactive, not proactive.
And you know what? That’s not necessarily a bad thing. But you have to be ready for it.
Imagine this: a big player in your industry reaches out, loves what you’ve built, and wants to talk acquisition. If you haven’t done your homework—on valuation, deal structure, or even what you want out of a sale—you’ll scramble.
That’s why being “exit-ready” is more important than sticking to a rigid plan. Keep your data room organized. Know your numbers. Stay on top of your financials, user growth, and metrics. Always be able to answer the question: “What’s your business worth today?”
Also, maintain good relationships with competitors and industry leaders. Many of these opportunistic exits start with informal conversations. A partner today could be a buyer tomorrow.
Be open. Stay prepared. You don’t have to push for an exit constantly, but you should always be ready if opportunity knocks.
16. 90% of successful exits involve advisor or investor influence
Almost every successful startup exit—nine out of ten—has advisors or investors playing a critical role. That’s because these people bring something founders usually don’t have yet: connections, experience, and deal-making savvy.
Founders are often heads-down building the product, growing the team, and managing day-to-day operations.
But when it’s time to exit, it’s a completely different game. Negotiations, legal terms, buyer positioning, deal timing—this is where experienced advisors and investors shine.
If you want a strong exit, surround yourself with the right people early. Not just any mentor, but someone who’s been through a real acquisition or IPO. Look for ex-founders, M&A professionals, or VCs with a solid track record of helping companies exit.
Once they’re in your corner, involve them in strategy discussions. Share updates on your traction. Ask them to make introductions when the timing is right.
Many exits happen because an advisor said, “Hey, I think I know someone who’d be interested in acquiring you.”
Also, listen to their advice even if it goes against your instincts. Advisors can see risks and opportunities you might miss. If they suggest pushing off an exit to grow valuation, or jumping on an offer while the market’s hot—take it seriously.
A good advisor doesn’t just help you plan your exit—they help you get the best possible outcome.
17. 33% of founders regret not having a clearer exit strategy
Founders often get caught in the rush of building—launching the product, landing the first customers, raising capital. It’s fast-paced, high-pressure, and all-consuming. So, it’s not surprising that nearly one in three founders later regret not taking the time to build a clear exit strategy from the beginning.
This isn’t about missing out on a perfect acquisition or IPO. The regret comes from missed leverage, poor timing, avoidable stress, and lost control. A fuzzy exit plan can lead to tough situations—saying yes to the wrong buyer, diluting too much equity, or getting stuck in the business longer than intended.
So let’s talk about how to avoid that.
What Regret Looks Like After the Fact
The warning signs usually show up too late.
- A buyer makes an offer, but you don’t know what your company is worth.
- Investors start asking about liquidity, and you realize you haven’t planned how they’ll get paid back.
- You’re five years in, tired, and unsure what the next move is—but you never built the company to run without you.
These aren’t just hypothetical—they’re common. And they’re avoidable.
18. Only 18% of bootstrapped startups have formal exit plans
When you’re bootstrapping, every dollar counts. You’re focused on keeping the lights on, growing revenue, and building something that pays for itself. That’s why fewer than 2 in 10 bootstrapped founders create a formal exit plan.
And that’s understandable. Without investors breathing down your neck, there’s less pressure to outline an endgame. But having no plan at all can still be risky.
Even if you’re not chasing venture capital, you should still ask: what does my finish line look like? Do I want to sell to a competitor? Grow and get acquired by a larger platform? Pass the business on?
A simple one-page exit plan can go a long way. It doesn’t need financial projections or market comps—just your goals, timeline, and potential acquirers. Knowing what you’re building toward helps with every decision, from pricing to hiring.
Also, being bootstrapped doesn’t mean you’re off the radar. Many companies love acquiring profitable, lean businesses that fly under VC radar. If you’re open to being bought someday, lay the groundwork now.
Keep clean books. Track key metrics. Build defensible advantages. That way, if a buyer shows up unexpectedly, you’re not starting from zero.
Bootstrapped doesn’t mean aimless. You can run lean and still plan smart.
19. 48% of exit strategies are developed to align with investor expectations
Nearly half of all startup exit strategies are created with one thing in mind: keeping investors happy. That means founders often tailor their exit goals to match what VCs expect, even if it’s not what the founder originally wanted.
This isn’t necessarily bad. After all, investors are putting in capital and taking risk—they deserve a return. But it becomes a problem when the founder’s goals start to drift away from what actually makes sense for the business.
If you’re raising money, understand this: your investors will expect a liquidity event. That could be a sale, IPO, or even a secondary share purchase. Whatever it is, they want their money back, ideally multiplied.
So when you build your exit strategy, be transparent. Talk about what you realistically see as possible. If you’re not aiming for a unicorn IPO, say that. Many investors are fine with smaller exits if the returns are strong and the path is clear.
More importantly, check for alignment before the term sheet. Ask potential investors: what’s your ideal exit timeline? What do you consider a successful exit? This saves everyone headaches later on.
An investor-aligned exit strategy works best when it’s also aligned with your vision. Don’t just build to satisfy others—build toward a win-win.
20. 22% of startups pivot their exit plan based on market changes
Markets don’t stand still. Competitors rise. Tech evolves. Investor sentiment flips. That’s why more than 1 in 5 startups end up changing their exit strategy as the market shifts around them.
Maybe IPOs dry up and acquisitions become hot again. Maybe your target acquirer gets acquired themselves. Or maybe your product becomes more valuable in a new market you hadn’t considered.
Adaptability is key here. Don’t treat your exit strategy like it’s set in stone. Instead, build a flexible plan that you can tweak as things change.
Watch your industry closely. Set up Google alerts for key competitors. Follow major players and trends. If the M&A landscape heats up, think about how to make yourself appealing. If funding dries up, start planning for profitability and a strategic sale.
Also, revisit your plan every six months. Ask: is our current path still viable? Are there new opportunities we’re missing?
And talk to your investors or advisors when changes happen. A good partner will help you assess your new options and avoid emotional decisions.
The best exits often come from founders who are willing to shift gears when the market signals a better direction.
21. 28% of exits result in less than the expected valuation
Nearly 3 in 10 startup exits end up being a disappointment from a valuation standpoint. That means the company sells, but not for the price founders, employees, or investors hoped for. This happens more often than people admit—and it stings.
Why do these lowball exits happen? A few reasons. Sometimes the market cools off and acquirers have the upper hand. Other times, a startup burns through its cash and has no leverage when a buyer shows up. And occasionally, founders overestimate how valuable their company really is.
To avoid this, start by grounding your valuation expectations in real data—not wishful thinking. Look at what similar companies have sold for. What revenue multiple did they get? What was their growth rate at the time of sale? Use that as your benchmark, not the hype.
Second, timing is everything. Exiting at the right moment—when you’re growing fast and buyers are actively acquiring—can make a massive difference in valuation. Wait too long and you might lose your momentum.
Also, always have a Plan B. If you’re relying on a big exit to pay off investors or turn a profit, and that exit falls short, what’s your backup? Can the business survive independently? Can you pivot into a different revenue model?
Disappointment happens when expectations don’t meet reality. So stay informed, stay honest, and plan for a range of outcomes.
22. 10% of exits exceed the founder’s original valuation goals
Here’s the upside: about 1 in 10 startup exits beat expectations. These are the dream deals—the surprise bidding wars, the strategic acquisitions, the IPOs that surge on day one. They’re rare, but they happen.
Usually, these wins come from a mix of smart execution, perfect timing, and a bit of luck. The company builds a product that’s suddenly in high demand. A buyer sees massive strategic value. Or the market just happens to peak at the right time.
While you can’t force this kind of outcome, you can create the conditions for it. First, focus on building real value. Solve painful problems. Build something that buyers can’t easily replicate.
Second, tell a strong story. Buyers and public investors pay more when they understand your mission, see your traction, and believe in your future. Your pitch, metrics, and brand all feed into this.
Third, keep your house in order. A clean cap table, organized financials, and strong contracts with customers can boost valuation more than you think.
Finally, stay open to opportunity. Sometimes the best exits come from directions you weren’t expecting—so keep your eyes and ears open.
Over-delivering on your exit goal is possible when you’re prepared and positioned right. The jackpot isn’t guaranteed, but you can stack the odds in your favor.
23. 75% of investors ask about the exit strategy during the first pitch
If you’ve ever pitched to investors, you probably noticed how quickly the conversation shifts from product and traction to one key question: “What’s your exit strategy?” In fact, 75% of investors bring this up in the very first meeting. Not the second, not after due diligence—right there, in the initial pitch.
And that’s because to them, the exit is not an afterthought. It’s the point.
Investors aren’t just buying into your vision. They’re buying into a path that leads to liquidity—a return on their money. That’s why your ability to speak clearly and confidently about your exit strategy can often be the deciding factor in whether the conversation moves forward… or ends there.
Let’s break down how to nail this part of your pitch.
Why Investors Want Exit Clarity Early
When an investor asks about your exit strategy, they’re not trying to rush you out the door. What they’re really asking is:
- Have you thought this through?
- Do you understand your market deeply enough to see what the endgame looks like?
- Is there a realistic path to a strong return on my capital?
They want to know you’re not just building for love of the product—you’re building something that can scale, be acquired, or go public. Something they can eventually exit with you.
An unclear or vague response can suggest a lack of strategic thinking, or worse, poor alignment of goals.
24. 60% of founders say the exit strategy becomes clearer after achieving product-market fit
Before product-market fit, your startup is still a question mark. After product-market fit, the picture sharpens. That’s why 6 in 10 founders say their exit strategy only really made sense once they hit that milestone.
Before that point, you’re testing, iterating, trying to figure out what people want. Exit planning feels abstract. But once customers are paying and sticking around, you start to see the real potential—and so do investors and acquirers.
So don’t stress too much about having a perfect exit strategy in your earliest stages. Focus on building something people love. Once you hit product-market fit, revisit your exit plan with clearer eyes.
Ask: what kind of business are we really building? A high-growth SaaS with strong margins? A niche product with strategic value? A consumer brand with potential for acquisition?
Let your traction guide the exit path. If your users are evangelizing your product, and growth is viral, maybe IPO is realistic. If a few large players start copying your features or reaching out, maybe an acquisition is on the horizon.
Use product-market fit not just as a product milestone—but as a strategic pivot point for your exit roadmap.
25. 30% of startups with no exit strategy still manage to exit successfully
Here’s some good news: even if you don’t have a formal exit plan, there’s still a decent chance—about 1 in 3—that you’ll land a successful exit anyway. That’s because great businesses attract attention, even without a pitch deck or roadmap.
Sometimes it’s the quality of the product. Other times it’s timing, network, or reputation. In any case, success isn’t impossible without a plan—but it’s a lot harder.
If you’re one of those founders who prefers to “build and see what happens,” that’s okay—as long as you keep the fundamentals strong. Grow consistently. Keep your numbers clean. Build relationships in your industry.
And when an opportunity shows up, don’t freeze. Move fast, get advice, and evaluate the offer objectively. Many successful exits come from unexpected introductions or inbound interest.
That said, imagine how much better your outcome could be if you had a plan. Having no strategy might work—but having one gives you more control, leverage, and options.
A casual approach can still lead to an exit, but a strategic one often leads to a better exit.
26. 95% of acquisition deals involve due diligence on exit alignment
When a startup gets acquired, it’s not just about the product or the team—it’s also about alignment. In 95% of deals, acquirers go deep into due diligence, and a big part of that is making sure your business and vision align with theirs. If there’s a mismatch, the deal can fall apart.
Buyers want to know: will this company integrate well with ours? Are the founders on board with the transition? Do the financials and projections support the price being asked? Is the culture compatible?
Founders who treat alignment as an afterthought often find themselves blindsided. Maybe you’re aiming for a quick exit, but the buyer wants you to stay on for five years. Or maybe you’ve promised your investors a return that doesn’t match what the acquirer is willing to pay.
To prepare, always be clear on what you want out of an acquisition. Do you want to stay involved? Do you want your brand to live on? Or are you looking to exit cleanly?
Also, prepare your financials in detail. Have your metrics, contracts, and cap table organized. And understand your own company’s value drivers—so you can explain clearly why you’re worth the asking price.
Most importantly, talk to potential acquirers well before any deal. Build trust. Learn what they value. The best exits happen when there’s alignment from day one—not just during due diligence.
27. Only 5% of startups exit exactly as originally planned
Only 1 in 20 startups exit the way they thought they would. The other 95% either take longer, go down a different path, or exit in ways they never predicted. This stat proves one thing clearly—no matter how detailed your plan is, flexibility is everything.
The startup world is full of twists. You might build for a consumer market and suddenly get traction with enterprise clients. You might plan to IPO and get acquired before you ever go public. Or maybe your core product gets sidelined, and a side feature becomes your main value.
That’s not failure. That’s adaptation. The key is to treat your exit strategy as a compass, not a GPS. It should guide you—but not restrict you.
Review your strategy regularly. Ask: is this still the right direction? Has anything changed in the market or our business that should shift our path?
And keep your stakeholders in the loop. If you pivot from an IPO focus to a private sale, explain why. If a faster exit opportunity shows up, weigh the pros and cons together.
Planning is essential. But the real strength lies in how well you adjust when things don’t go to plan.
28. 50% of exits happen through internal negotiations and founder networks
Half of all startup exits don’t start in boardrooms or pitch decks. They start in conversations—often informal, and usually through a founder’s own network.
That means your relationships are one of the most powerful tools in your exit playbook.
It might be a chat at a conference, a warm intro from an advisor, or a shared investor connection. Often, a buyer gets interested long before an official process begins. They’ve been watching you grow, hearing about your product, or seeing your team at work.
This is why networking isn’t just for raising funds. It’s just as important for exits.
So start building those bridges early. Reach out to other founders, execs at larger companies, and strategic partners in your industry. Attend industry events. Join mastermind groups. Publish thought leadership on platforms where buyers might be watching.
And don’t be afraid to plant seeds. Let the right people know you’re open to conversations. These talks can stay informal until the time is right—but when it is, you’ll already have the relationship in place.
Remember: people buy from people. And in many cases, exits happen not because your deck was perfect, but because someone trusted you.
29. 85% of serial entrepreneurs have more refined exit strategies in later ventures
Experience is a game changer. Entrepreneurs who’ve been through the startup rollercoaster before tend to take exits more seriously—and more strategically. About 85% of them go into their next venture with a clear, well-thought-out exit strategy from the beginning.
Why? Because they’ve lived through the chaos. They know how much time and money can be wasted chasing the wrong exit path. They know what acquirers care about. They’ve learned to think several moves ahead.
If you’re a first-time founder, you don’t have to wait for your second or third startup to get it right. Learn from those who’ve done it. Read post-mortems. Talk to exited founders. Ask what they’d do differently.
Then, apply those insights. Build with optionality in mind. Don’t just focus on what your product can do—think about who might want it and why. Start your exit planning early, not just for your investors, but for yourself.
Also, think long-term about your personal journey. Do you want to exit and start again? Build one business forever? Retire early? These answers will shape how you design your company.
Exit strategy isn’t just business—it’s personal. Seasoned entrepreneurs know that, and they plan accordingly.
30. 42% of founders say preparing for an exit distracted from business growth
Here’s a harsh truth: almost half of all founders say that working on their exit strategy distracted them from actually growing the business. That’s the dark side of exit planning—when it becomes a rabbit hole instead of a roadmap.
Preparing for an exit can involve legal work, financial audits, long meetings with potential buyers, and stress. It’s easy to get pulled away from your customers, your team, and your product.
So how do you balance the two?
First, don’t start “selling” your company until it’s sellable. Focus on traction first. Product-market fit, strong retention, and healthy revenue are what make buyers interested. Until you have that, your main job is growth.
Second, delegate when possible. Bring in advisors or hire consultants to handle parts of the exit process. Don’t try to do everything yourself.
Third, create a timeline. If you’re planning to exit in 18 months, build a plan where the first 12 months are all about growth, and the final 6 months are for deal prep.
Most importantly, remind yourself: exits are a result of strong businesses—not a replacement for one.
Growth first. Exit second. That’s how the best founders do it.
Conclusion
Exit strategies are more than just a section in your business plan. They’re tools for clarity, alignment, and long-term success. As we’ve seen from the stats, many startups plan them—but few stick to them exactly. And that’s okay. The real power is in thinking ahead, staying flexible, and building with purpose.
