Talking About Exit Strategies

The Geekdom Fund looks to invest in companies that can quickly scale to giant size quickly. The founders are taking home-run swings.

While angels and private equity investors may like to hear about a company's "exit strategy" in a pitch deck, we don't. The Series A investors who invest in rounds after us won't ask it either. We all know that the world will change in the next 4-6 years it will take for a startup to get huge ($10s of millions in revenue a year or a month).

Instead, we encourage entrepreneurs to make certain investors know they're all-in and want to build the company to a giant size someday. Let the venture investors dream about their path to getting out.

And, if you are asked, your first thought should be: "Hmm, does this investor have the patience to be right for my company?"

Your answer should be "I want to build a world-changing, giant business over the next decade. That should be valuable to lots of people, so there are lots of ways for investors to get liquidity if we're successful."

Michael Girdley