I read some blogs, there are something like "I invested 20 startups, among which 10 exit".

What does exit mean? Means the startup failed? broken?


1 Answer 1


It means that they sold the equity (shares) in which they had invested, generally with a profit.

It is a common expression in finance and refers to what is generally referred to as "the exit strategy".

  • The method by which a venture capitalist or business owner intends to get out of an investment that he or she has made in the past. In other words, the exit strategy is a way of "cashing out" an investment. Examples include an initial public offering (IPO) or being bought out by a larger player in the industry. Also referred to as a "harvest strategy" or "liquidity event".


In your example, the investor is saying that they invested in 20 start-ups and that they sold the shares of 10 of them.

  • You mean people who invested startup sold the equity of the startup company, and they made money?
    – Sato
    Jul 20, 2016 at 6:51
  • Yes, they may also sell at a loss if the investment was not that profitable.
    – user66974
    Jul 20, 2016 at 6:53

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