How do I sell before the stock market

Exit: this is how you sell your company successfully

From seed to IPO: the financing cycle of a start-up

The road to an exit through an IPO is long and only very few start-ups go through it to the end.

There are numerous stages in the financing cycle of a start-up.

The following financing rounds can be roughly broken down:

phaseheightWho?
beginOften not muchThe founder himself as well as Family & Friends
SeedUp to 500,000 eurosBusiness angels, high-tech start-up fund
Series A1 million eurosVenture capital funds
Series Bup to 10 million eurosExisting investors, private equity funds
Series C, D, E ...> EUR 10 millionExisting investors
IPOMillions, sometimes billionsPrivate investors, institutional investors such as banks, funds, insurance companies

You can read all the details about the individual stages in the financing cycle here.

Laying the foundations: investor readiness - what do investors pay attention to?

If bootstrapping takes too long, you usually need investors to finance your start-up. But not all investors are the same. Just because of the amount of capital required, different investors are available in the different phases of the company's development. At the same time, depending on the phase, investors set different priorities when assessing the company.

Accordingly, the specific needs of the founders should be clear in advance of the search for investors. This increases the success. However, regardless of the phase, there are certain aspects that are essential for investors. Under the heading Investor Readiness, we have put together the most important answers to the question of what investors pay attention to.

The five exit strategies for startups

Exit - but how? We have examined five exit strategies for start-ups in more detail. This includes:

  1. Corporate Buyer
  2. Trade Sale
  3. Leveraged buyout
  4. IPO
  5. Merger

We also show which seven questions you should answer in advance when dealing with the issue of exit.

Exit through the IPO: what goes with an IPO

The silver bullet for an exit is certainly the IPO. And in Germany, too, there have been some examples of start-ups in recent years that have chosen this path after a few years. These include, for example, Zalando, Rocket Internet or Windeln.de.

Stock exchange prospectus, trading segment, roadshow, bookbuilding, etc. are some of the terms around the IPO. We show when an IPO makes sense, which individual steps are necessary and give seven tips for a successful IPO.

How an IPO works in practice is shown step by step using the example of Zalando.

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And after the IPO: conduct investor relations

The larger the financing rounds, the more extensive the communication with the investors. But this is nothing compared to the requirements for capital market communication after an IPO. Investor Relations must, on the one hand, meet numerous legal requirements for transparency and disclosure requirements and, on the other hand, build and maintain trust in the capital market in continuous contact with shareholders, potential investors, analysts and financial media.

We have put together here which principles good investor relations should follow, which tasks have to be fulfilled and which instruments are available to investor relations.

Support for the search for investors and the IPO: the Deutsche Börse Venture Network

The Deutsche Börse Venture Network wants to bring young growth companies together with investors. After completing seed funding, you can apply for admission. The investors represented in the network include business angels as well as venture capital and private equity companies. Network events are organized and an extensive course program is offered.

In addition, the Deutsche Börse Venture Network provided an online platform that supports the processing of the financing rounds. We present all services in detail as well as the admission criteria here.

Author: Für-Gründer.de editors

As editor-in-chief, René Klein has been responsible for the content of the portal and all publications by Für-Gründer.de for over 10 years. He is a regular interlocutor in other media and writes numerous external specialist articles on start-up topics. Before his time as editor-in-chief and co-founder of Für-Gründer.de, he advised listed companies in the field of financial market communication.