Exit

The venture capital investment has a limited duration. The fund realizes its profits by selling its stake of company shares. Some of the possible exit paths are:
– initial public offering on stock exchange and then selling the shares owned by the fund,
– selling the shares to a large enterprise operating in a similar industry, striving to strengthen its market position (an industry investor, strategic investor),
– selling the shares to another venture capital fund specializing in investing in companies that are at a later stage of development,
– sale of shares to the company management team (MBO – management buyout).