Goodx releases report on angel investors thoughts on startup exit

Goodx has just released its report on angel investors thoughts on startup exit. The report reflects the opinions of over 100 angel investors around exit expectations and experience.

Of those angels interviewed 52% of angels interviewed indicated they had set expectations around startup exit. Furthermore, 60% indicated they work directly with a founder to form an exit strategy.

When asked their opinion on being pitched an exit strategy on Day 1, 43% suggested they were indifferent while 32% indicated they were opposed. Furthermore, 27% confirmed they liked that a founder had contemplated exit.

Below is a summation of the expected return of angel investors at the various fundraising stages. The inherent risk which is notably higher in a pre-seed stage is met with a higher required return. The average expected return across investment stages was 18x for Pre-Seed, 13 x for Seed and 8 x for a Series A+. Furthermore, of those that participated in the study the most common number of partial or complete exits was 1-3 companies over their lifetime as an investor.

When asked about the overall exit landscape Edward Johnson, CEO at Goodx said, “While founders create great companies, they often find it difficult to exit. This is primarily due to the absence of a secondary market for startup and small businesses. We at Goodx are looking to create a liquid market for startup acquisition. We believe this will foster further innovation within the startup ecosystem and remove uncertainty allowing founders to freely enter and exit.”

To view the full report head to www.goodx.com.au/resources