Exit
Also known as: M&A Exit, Acquisition, IPO
The event through which investors realize a return on their investment — typically through acquisition or IPO.
Full Definition
Exits in healthcare venture capital occur primarily through strategic acquisition (purchase by a larger healthcare company, device company, or pharma company) and less frequently through IPO. The expected exit timeline in healthcare is typically 7–12 years from initial investment — longer than in software due to the time required for clinical validation, regulatory clearance, and reimbursement establishment. Exit valuation is driven by revenue multiples, strategic value to the acquirer, and market conditions.
Example
A surgical robotics company is acquired by a large medical device company for $280M — 8x the $35M raised. Early investors who participated in the $2M seed round at a $6M post-money valuation receive a 46x return on their investment.