Exit Strategies for Mature Companies & Startups

Vinay Rao, Co-Founder & Director, Healthalyze
Tuesday, February 21, 2017
Vinay Rao, Co-Founder & Director, Healthalyze
Headquartered in Bengaloru, Healthalyze enables the users to analyze their health information through powerful visual tracking aids and take control of their health. It assigns a single score to the user taking into account multiple factors that may affect his/her health condition.

Startups in general are facing a lot of validation in the marketplace today. The question being asked by many investor or industry pundits is the begging question - Are startups in general programmed for failure? Now, this is not fiction as the writing on the wall is very clear and for a long time at that. While the industry has witnessed the momentum among several startups taking shape in recent years, unfortunately, most of them are incepted simply for the purpose of receiving funding or getting acquired. This is clearly a recipe for failure.

Startup founders on their part are burning the midnight oil trying to develop compelling arguments for scaling their respective businesses. While the intent is very much evident, are they committed enough to scale sufficiently for their investors and stakeholders? Investors on their part are increasingly scrutinizing every step of the startup to avoid failures, very often resulting in complete business pivots, which is a sea change from the original business idea.

While this reflects the general market sentiment and is frowned upon generally, this is also the stark reality for such businesses. With this backdrop, exits are commonplace today in the startup ecosystem. Exits from a fully controlled operation require considerable planning. Let us analyze the various exit strategies that are an option today -

Initial Public Offering (IPO)

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