An exit strategy, if implemented early, is the surprising secret to ultimate startup success. Find out why―and how to develop one―in this comprehensive, practical guide from veteran Silicon Valley dealmaker Touraj Parang.
In 2008, Touraj Parang's award-winning startup, Jaxtr, had 10 million users, raised nearly $20 million from top-tier Silicon Valley investors, and seemed poised to sail straight through the Great Recession. But, by January of 2009, Jaxtr’s only hope for survival was to find a buyer―sadly, it was too late for that.
In Exit Path, Touraj draws on the lessons learned from that chaotic experience and the extraordinary successes that followed once he (and the entrepreneurs he advises) made creating and executing an exit strategy a top priority. For too long entrepreneurs have been failing to establish the requisite relationships and properly prepare for the most important milestone in their life cycle: a sale to an acquirer. But in today’s hyper competitive and interconnected business world, that is no longer an option. In this first-of-its-kind, comprehensive guide, you'll discover the surprising reasons few startups succeed while many fail―and you’ll learn that implementing an exit strategy early will empower you to take charge of your startup’s ultimate fate, maximizing its potential for success while mitigating the risks of failure.
Arranged in four sequential parts, Exit Path walks you through actionable steps to devise and execute an effective exit strategy, starting with a fresh new perspective on the critical importance of creating a viable sale option for your startup. You'll learn why creating your exit strategy is necessary well before you're contemplating an exit, regardless of the stage of your startup. You’ll also discover how to create your own exit plan, how to make your plan a reality through personal and business relationships, and how to approach and negotiate with acquirers for an outcome best aligned with your values and ambitions should the need arise.
Whether you are an entrepreneur, investor, or advisor, the expert advice and insights in Exit Path will inspire you to take charge of your startup’s destiny and unlock its strategic potential and options over time.
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Touraj Parang is the Chief Operating Officer at Serve Robotics, an innovative robotic delivery startup in Silicon Valley, and an Operating Partner at Pear VC, a top-tier early-stage venture capital firm. As Vice President of Corporate and Business Development at GoDaddy, he led M&A and strategic partnerships for several business units. Parang has founded and sold several startups and has participated in evaluation, negotiation, and execution of hundreds of M&A, strategic partnership, and venture financing transactions valued at more than $5 billion.
"This is the most useful book I’ve ever read on how to think about startup exits. Touraj Parang makes a compelling case for entrepreneurs and investors to talk early and openly about options for acquisition.
—Adam Grant, #1 New York Times bestselling author of Think Again and host of the TED podcast, WorkLife
"Exit Path is a must-read primer for everyone in the startup ecosystem. It elegantly blends Touraj’s experience with illustrative case studies of notable M&A transactions, complemented by insights from the fields of philosophy, psychology, and behavioral economics."
—Lily Sarafan, cofounder and executive chair of TheKey; board member at Stanford University, Instacart, and Thumbtack
"So many entrepreneurs are unprepared for the most important transaction in their startup’s life: their exit. Learning from Touraj’s decades-long experience and following his guidance in Exit Path will ensure you are not in that camp."
—Pejman Nozad, founding managing partner of Pear VC; #1 Forbes Midas Seed List 2022 (US)
"The happy ending for every startup story includes an IPO or acquisition. But despite this, nearly every book ever written about entrepreneurship ignores or glosses over the details of how to earn that happy ending. In Exit Path, Touraj provides an end-to-end blueprint on how great businesses achieve great exits."
—Chris Yeh, New York Times bestselling coauthor of The Alliance and Blitzscaling; founding partner of Blitzscaling Ventures
"Great entrepreneurs are always planning and iterating. Yet all too often they fail to build the most important relationships that can lead to a lucrative acquisition or, sometimes more importantly, provide a necessary lifeline for a faltering startup. In Exit Path, Touraj provides a roadmap for building those relationships and keeping a company's options open. It is a powerful tool for any entrepreneur who wants to be prepared for the best while planning for the worst."
—David Hornik, founding partner at Lobby Capital; lecturer at Harvard Law School and Stanford Graduate School of Business
"The best founders are mission-driven and motivated more by impact than an exit. But the final mile cannot be traversed by the unprepared. In this book, Parang sheds a rare spotlight on how to manage one of the most important decisions in a founder’s career."
—Scott Belsky, founder of Behance (sold to Adobe); author of The Messy
"I know firsthand that startups often hang by a thread. Without an exit strategy, even great entrepreneurs can snatch defeat from the jaws of victory, while others work miracles to secure great futures for their team and product. In this book, Touraj prepares you for the most important moments in startup life, drawing on his extensive experience to help tilt the odds in your favor."
—Jeff Seibert, cofounder of Digits, Crashlytics (sold to Twitter), Fabric (sold to Google), and Increo (sold to Box)
"Entrepreneurs look for guidance they can relate to, advice they can trust, and actionable steps they can take. Exit Path delivers on all of those and keeps you engaged, entertained, and informed in the process."
—Oren Zeev, founding partner of Zeev Ventures; early investor and board member of Houzz, Chegg, TripActions, Tipalti, and Firebolt
"In Exit Path, Touraj draws on his unique expertise to shine light on an often-ignored critical foundation of successful acquisitions: the interpersonal relationships."
—Matt Mullenweg, founder and CEO of Automattic; cofounder of WordPress
"Finally, a blueprint for taking a startup to a successful exit. Regardless of current state of their startup, every entrepreneur must carefully consider their exit strategy. Exit Path offers a definitive guide to exiting by the man who made my first $100 million exit happen."
—Haroon Mokhtarzada, cofounder and CEO of Truebill (sold to Rocket Companies) and Webs (sold to Vistaprint)
"Touraj is a secret weapon for many of the best entrepreneurs in tech—the first call for all things M&A. Exit Path will undoubtedly become the new standard guide for founders navigating the final leg of their journey."
—Hooman Radfar, cofounder and CEO of Collective and AddThis (sold to Oracle); venture partner at Expa
"In Exit Path, Touraj provides a much-needed insider view into the esoteric and often-inaccessible world of M&A and strategic partnerships, broken down to their simplest building blocks."
—Sean Ellis, Random House international bestselling author of Hacking Growth; host of the Breakout Growth Podcast
"Exit Path is a must-read for every entrepreneur. Touraj completely demystifies how to successfully get acquired, one of the most challenging aspects of startups."
—Hiten Shah, cofounder and CEO of Nira, Crazy Egg, and KISSmetrics
"From his firsthand experience as a buyer and seller, Touraj brings a unique and practical perspective to show you why, when and how to create strategic partnerships or sell your company."
—David Popowitz, former SVP corporate and business development of GoDaddy
"Blending business, psychology, behavioral economics, and philosophy, Exit Path is the definitive guide on how every entrepreneur can create tremendous value through strategic relationships, written by one of the most beloved relationship builders in Silicon Valley."
—Bryan Lip, global head of business and corporate development of Houzz
"I’ve worked with many, many start-ups and led hundreds of M&A transactions ranging from a couple of million dollars to more than $10 billion. That experience has shown me the value of developing a thoughtful exit strategy—even if no exit is imminent. Exit Path takes you through the steps of preparing for an acquisition, from strategy creation to generating inbound interest, and negotiating terms. It’s never too early for entrepreneurs to start that important planning: preparation breeds success."
—Warren Lazarow, partner and former chair of global corporate department of O’Melveny; four times on Forbes Midas List of Top 100 Technology Dealmakers Worldwide
"Entrepreneurs can tilt the odds of survival and success in their favor by designing and implementing an exit strategy while they are working to build a profitable startup. This book explains how."
—Michael Diz, partner and co-chair of mergers & acquisitions group of Debevoise & Plimpton
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