Micro, small, and medium-sized enterprises (MSMEs) operators have been urged to build exit strategies into their business plans from the start, as investors increasingly prioritise how they will recoup capital over the strength of the idea alone.
Cynthia Chisom, partner, research and advisory at Starup Development Centre, said investors now assess potential exit routes before committing funds, making long-term planning a key factor in attracting venture capital.
Chisom, speaking on the topic “Nigeria’s Startup and Venture Capital Ecosystem: What’s Changing?” on BusinessDay Morning Live, explained that investors, when making business decisions, go beyond the companies they invest in to how they are going to exit that investment.
“Investors are looking at the opportunities to exit in a particular market, and are also tying that with their investment thesis.
“They’re looking at how long it would take for an entrepreneur to reach specific numbers from as low as $1 million to as high as
This post was originally published on this site.
