{"product_id":"the-exit-decision-in-venture-capital-how-to-choose-exit-timing-and-exit-route-von-heinrich-stilling","title":"The Exit Decision in Venture Capital. How to Choose Exit Timing and Exit Route","description":"\u003cp\u003eAcademic Paper from the year 2014 in the subject Business economics - Investment and Finance, grade: 1,7, Technical University of Munich, language: English, abstract: The focus  of this paper lies on answering the questions, what factors should be considered to successfully exist a venture with regard to exit timing and routing and how these strategic choices are interrelated.\u003c\/p\u003e\u003cp\u003e\u003c\/p\u003e\u003cp\u003eThe divestment process plays a critical role in the Venture Capital (VC) business model. Typically, a VC invested venture is not able to pay dividends prior to its exit as the business has not fully matured yet. Therefore, a Venture Capital Firm (VCF) generates virtually all of its income by realizing capital gains at the time of the venture¿s exit. This indicates that a VCF heavily depends on a successful divestment transaction - in most cases, a poor exit execution leads to an inferior return on investment which in turn can ruin the VCF¿s overall performance. A VCF therefore plans its exits carefully and evaluates its strategic choices. In this context, the two most important exit decision variables considered by a VCF are the choice of exit route and the choice of exit timing. By choosing the right exit route and pursuing good exit timing, a VCF can significantly increase its proceeds for a given venture. The primary focus of this paper lies on answering these aforementioned questions by drawing together the empirical research on these two dominant strategic exit choices.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783346041814\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9783346041814","offer_id":39430314295389,"sku":"9783346041814","price":18.95,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/4f87df87-03d1-4054-9c86-847c0b69c4be.jpg?v=1776835062","url":"https:\/\/shop.autorenwelt.de\/products\/the-exit-decision-in-venture-capital-how-to-choose-exit-timing-and-exit-route-von-heinrich-stilling","provider":"Autorenwelt Shop","version":"1.0","type":"link"}