Venture investors’ and entrepreneurs’ exit strategies from innovative companies

Exit strategy is a cornerstone of the venture investments. Despite its importance, only 34% of IT entrepreneurs have a solid exit plan, that they can provide to venture capitalist for his consideration. The purpose of this article is to study the current state of scientific literature in the field of exit strategy and offer the vectors for further researches. In the article we offer our own definition of the ‘exit strategy’, describe primary exit mechanisms of VCs and business owners, analyze key foreign and domestic scientific literature. As a result, we found out that currently there are no methods that would help to simplify the selection of the exit mechanism. Thus, future researches could be tied with the development of such methods

Keywords: IPO, M&A, LBO, venture investments, exit strategy


1.Lopatnikov L.I. Economic and mathematical dictionary: Dictionary of modern economic science / М.: Delo, 2003. — 519 p.

2. Russian private equity and venture capital market review. RVCA, 2017. .

3. B. Guo, Y. Lou, D. Perez-Castrillo, ‘Investment, Duration, and Exit Strategies for Corporate and Independent Venture Capital-backed Start-ups’//Barcelona GSE Working Paper Series. Working Paper no 602, 2011.

4. J. Cumming, G. MacIntosh, ‘A Cross-Country Comparison of Full and Partial Venture Capital Exits’//Law and economics research paper No. 01-04, 2003

5. J. Hawkey, ‘Exit Strategy Planning: Grooming Your Business for Sale Or Succession’. Goover Publishing Ltd., 2002. 81 p.

6. K. Wennberg, J. Wiklund, ‘Reconceptualizing Entrepreneurial Exit: Divergent Exit Routes and Their Drivers’//Journal of Business Venturing, 2010. 48 p.

7. M. Pervana, J. Višića, K. Barnjaka, ‘The impact of M&A on company performance: Evidence from Croatia’//Procedia Economics and Finance, 23, 2015.

8. M. Wright, S. Thompson, K. Robbie. ’Venture capital and management-led, leveraged buyouts: a European perspective’//Journal of Business venturing, 7.1, 1992: 47-71.

9. MoneyTree report 2016, N.Y.: PricewaterhouseCoopers, 2016.

10. National Venture Capital Association Yearbook 2013, N. Y.: Thomson Reuters, 2013. 110 p.

11. O. Bayar, T. Chemmanur, ‘IPOs versus Acquisitions and the Valuation Premium Puzzle: A Theory of Exit Choice by Entrepreneurs and Venture Capitalists’ 46, 2011, 1755-1793.

12. R. Cressy, ‘Venture Capital’//The Oxford Handbook of Entrepreneurship, 2008.

13. T. McKaskill. ‘Ultimate exits’. Australian Graduate School of Entrepreneurship, 2010.

14. U. Malmendier, E. Moretti, F. Peters, ‘Winning by losing: Evidence on the long-run effects of mergers’. NBER Working paper series, Working Paper 18024.

15. V. Maksimovic, G. Phillips, N. R. Prabhala, ‘Post-mergers restructuring and the boundaries of the firm’. NBER Working paper series, Working Paper 14291.