Meaning
Liquidation of a position by a founder or investor marks the conclusion of their involvement in a venture. An exit occurs through a sale or a merger of shares. It signifies the point where the risk of the individual is transferred to a new party or extinguished by the company.
Transfer Event
Ownership moves from one entity to another through a documented exchange of value. Although the exit is the end for the individual, it requires a detailed audit of all previous records to ensure the shares are clear of liens. This event often triggers a final valuation of the entire organization.
Valuation Lock
Price discovery happens at the moment the transaction is signed and the funds move. An exit defines the actual return on the initial hours and capital invested in the project. It transforms a paper gain into a realized asset that can be used elsewhere.
Final Settlement
Agreements signed during this phase release all parties from future claims related to the past. The exit is the ultimate test of the records kept during the founding years. If the paperwork is missing, the cost of the transaction increases as the new owners demand more proof of title.
The departure is the terminal point of the founder lifecycle.
