Pitch Deck Exit Strategy Slide | How-to Instructions

THE SLIDE EXPLAINED

Why you should have an exit strategy slide in your pitch deck

Isn't the exit something every entrepreneur has thought of? At least once? The years of hard work, struggle, and courage would finally pay off with an "exit." I can assure you that your investor has already thought about an exit even before having invested in your company. Most probably, he has thought about the exit a lot. At some point in your relationship, your investor is likely to sell his shares to earn as much profit as possible. It is his nature; that's the business model of an investor.

You can give a peek on how this day could look like by adding an exit (strategy) slide to your pitch deck. On this slide, you should list companies that may be interested in buying your company someday. You can also add a list of companies that are similar to yours that have successfully sold their companies. Don't forget to name the buyer and the valuation at the time of the exit.

Be careful when presenting your exit strategy slide. One thing investors don't like to see are entrepreneurs who are just doing business for the exit. Furthermore, it could be seen as unfavorable if you look for potential buyers instead of thinking about how to become the market leader in your area.

INSTRUCTIONS

How you can build a killer exit strategy slide

Content of the slide

Your exit strategy
A list of potential acquirers
Similar companies and their exit cases

Questions to answer with your pitch deck

Questions your slide answers

What is your preferred exit channel (e.g. acquisition, IPO, ..)
Who could acquire your company?
Do you want an exit?

Common Slide Mistakes

Thinking too much about the exit during the early stage of your startup.

Slide design

Use a clear and quickly readable font style
Make sure to use high-resolution pictures
Keep the design simple

LOOKING AT THE PROS

Example Exit Strategy Slide of Square

The exit strategy slide of Square is an excellent example of such slides. They have a lot of potential buyers that could acquire the company resulting in a "high ROI." This is what most investors want to see for the companies they invest in - a high ROI.
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However, some investors want you to put hard work into growing your company and not into thinking about who might want to buy your venture at some point. The best thing to do is to speak with startups in which your potential investor is already invested in. This is how you can get a sense of what the investor thinks about exits.

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Exit Strategy