Entrepreneur and angel Investment Love: Together cry together laugh sooner or later break up Better Together good scattered

Exit, for angel investors is a very important link. When your start-up company grows to a certain extent or is poorly managed, the angel investor will try to sell all the options in exchange for money. Because the essence of being an investor is to let money flow and realize value-added, and exit is the key. Therefore, even if you have not considered the exit problem, your angel will take the initiative to withdraw from you, which is based on the nature of an angel investor decided. What you can do as a founder is to prepare yourself for the end of the relationship. At present, the main exit methods are as follows: Initial public offering, merger and acquisition, repurchase and liquidation of corporate shares. Let the Angels laugh all the way to IPO initial public offerings This is the most wanted to see for both angel investors and entrepreneurs. Listing means a sharp rise in corporate value, and the stock market's power to add value to the company can be said to be explosive. IPOs allow stock holders to get high returns in a short period of time, and even if angel investors opt out, entrepreneurs still have the advantage of an IPO to keep the company's money back. Of course, the IPO looks stunning, but the road is far from the small and medium sized start-ups that the angels typically choose to invest. There is no IPO, the next round of financing is also very beautiful if the IPO is just a look beautiful dream, then enterprise mergers and acquisitions, repurchase will be a major exit way. For angel investors, mergers and acquisitions are not as unattainable as IPOs, and procedures are relatively simple, shorter to complete, and easier to operate, so many angels will opt out at this time. In fact, for entrepreneurs, the Angels in this node to opt out is also good. On the one hand, the early Angel's exit may make room for other more powerful investors, which can further improve the financing ability of the enterprise. On the other hand, entrepreneurs can buy back a portion of the equity when Angels leave, thereby further controlling the business. The above content is the angel investors and entrepreneurs love the outcome, of course, not every love story is the perfect ending, tragedy is often happening. "Angel" to "devil" the first kind of tragedy is called the withdrawal of capital, is an angel. Angel divestment must have a purpose, and no matter what his purpose, the reason for its withdrawal is mostly because no longer optimistic about the future of enterprise development. If the enterprise is poorly managed, then the loss of investors will be further expanded, so investors choose to withdraw capital is understandable. However, withdrawal cannot violate the provisions of article 46th of the Partnership Enterprise Law, that is, it cannot be withdrawal in cases where the implementation of the partnership business is adversely affected. If an angel still chooses to quit when it is adversely affecting the execution of an enterprise and causes real losses to the company, the entrepreneur can claim the "irresponsible" Angel for damages. You and the Angel cry together: Bankruptcy Another kind of tragedy is called bankruptcy liquidation, this situation is the angel investors and entrepreneurs do not want to face. Because onceBankruptcy liquidation means that both sides are likely to be wiped out. This kind of exit way for the angel loss is more serious, after all, the entrepreneur loses mostly is the management, the operation, the business and so on pays, but the angel loses is the real gold silver. The above several kinds of angel Investor's exit way, mostly is advantageous for the angel and the entrepreneur mutually beneficial mutual benefit, therefore does not need to worry too much in the face "the breakup" the entrepreneur. The most important thing is to prevent the appearance of irresponsible angels, entrepreneurs can do some technical processing: in the early communication with the angel in the middle of the withdrawal of funds and other issues to negotiate, the loss caused by the withdrawal of capital clearly good breach of duty, aggravating the cost of divestment, and written investment agreement. When the price of a breakup is too great, will the other half break up casually?