🎢 The rollercoaster ride of a startup doesn't last forever!
Every startup journey eventually comes to an end, either in success or failure 🏁
The two main successful exit scenarios for startups are:
IPO (Initial Public Offering): when a startup goes public and sells shares on a stock exchange 📈
Every public company you can invest in on Bloom was once just a small startup!
Acquisition: when a larger company or investor buys the startup, often making the founders, employees and investors lots of money 💼💰
For example, in 2022 Adobe tried to acquire design startup Figma – which was started in 2016 – for $20 BILLION, but the deal was ultimately blocked by regulatory bodies.
However, most startups actually fail! 💀
Some common reasons include running out of cash, not finding product-market fit, and team issues 😢
In the case of failure, startups usually either shut down and liquidate their assets 🔒
Or they get acqui-hired, which is when a larger company buys the startup for a small sum, mainly for its talent 👨👩👧👦
Even though most startups fail, entrepreneurs take the risk for the tiny chance that they might change the world, and make billions of dollars through an IPO or acquisition 🌟