Business Pitch Dictionary by pitch.dog
Exits, liquidity & investor returns · Core

Exit

Also called: liquidity event

ELI5

Owners sell or convert their stake into cash or tradable value.

Used in conversation

“The base case assumes no exit before year seven.”

Definition

A transaction or event through which founders or investors realise some or all of their ownership value.

Here “Exit” means: A transaction or event through which founders or investors realise some or all of their ownership value.

Pitch context

You will see “Exit” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches exits, liquidity & investor returns.

Why it matters: In exits, liquidity & investor returns, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

  • Liquidity eventThe search label “liquidity event” can route to both entries.
Sources & evidence · 6

Direct term-level sources and supporting source families.