STREAM CONNECT 18: Rethinking success metrics: the return of the exit slide

As 2024 unfolds, the investment community is seeing a pivotal shift towards exit strategies as a primary indicator of success. 2023 was challenging, with a notable decrease in exit activities - Amazon, Apple, Google, Meta, Microsoft and NVIDIA did just 8 startup M&A deals, down from 33 in 2022. This slowdown is largely attributed to regulatory hurdles, as seen in high-profile cases like Adobe’s abandoned $20bn acquisition of Figma, and Microsoft’s lengthy battle to acquire Activision Blizzard.

It is predicted however that M&A is going to pick up soon — but we’re yet to really see things moving. Founders and investors say they hear from a lot of startups looking to sell, but those aren’t necessarily the kind of companies people want to buy. There is a gap between what people are willing to pay and what founders want to sell for, although reality will ‘bite’ soon enough; most founders running out of financing options would rather sell their business for something than see it disappear entirely.

For startups, this trend marks the resurgence of the “Exit Slide” in pitch decks. Investors now anticipate that entrepreneurs will have a clear understanding of their funding pathway and potential exit strategies from the early stages. This expectation comes after a decade of prolonged exit timelines and the unfulfilled potential of a “secondary market”. However, equity markets are less forgiving, especially for companies that haven't reached profitability, widening the gap between high-quality and struggling companies. With countries like Norway and Germany imposing exit taxes of 37% and 27% respectively, financial planning for exits becomes even more crucial for startups.

How should startups navigate the increasingly complex regulatory environment in planning their exit strategies? In light of the current market dynamics, how can startups and investors better align their valuation expectations? What strategies can startups adopt to manage high exit taxes in various jurisdictions?

Let’s explore this together at Stream Connect, episode 18!

Programme:

14:45 Doors open.

15:00 - 15:05 Welcome words by Margarita Khartanovich, Head of Startup Services.

15:05 - 15:20 "M&As - the road to the exit and what to expect", keynote by Juuso Aulanko, Managing Partner, M&A Professional at 3J Partners Oy.

15:20 - 15:35 "Partial liquidity via secondary transactions", keynote by Kaspar Hanni Partner, Specialist VC, Specialist Primary & Secondary Fund II.

15:35 - 16:00 "Rethinking success metrics: the return of the exit slide", panel discussion with Anssi Kiviranta (Serial entrepreneur & Angel investor, Co-founder of Strand Properties, Videobot, Bo LKV, Drop and Telkku.com, co-author of "EXIT stories" book), Kaspar Hanni, Heikki Väänänen (Founder and Exec.VP. Growth at HappyOrNot).

16:00 - 17:00 Networking facilitated by the Platform6 team

17:00 Event ends.

About Platform6

Platform6 is a startup house in the heart of Tampere that opened its doors on the 1st of October in 2020. It offers startups a structured growth path along with a curated space, peer support, global networks and carefully selected services & programmes that help startups at all stages (from ideation to international expansion)grow, scale and access private investments, public funding, mentors, strategic partners, corporates, top talent, customers, etc.

As of now, we have 80 startups, 7 organisations, 200+ members, and 5 startup programmes, working and running from Platform6 as well as 30 partners to support the startup growth. It is operated by a coalition of startups Tampere Startup Hub and supported by The City of Tampere.

Let’s connect!

The capacity of our venue is limited so we ask you to register only if you are sure that you can join the event. Cancel your registration if your plans change. We expect to be sold out fast - reserve your ticket well in advance. If you have any questions or requests, please direct them to Margarita Khartanovich, Head of Startup Services at Platform6 via margarita@platform6.fi.