Definition
The event where founders finally get paid (or at least some of them do after preferred investors take their cut) and VCs hit return targets.
Example Usage
The startup's founders were thrilled about the acquisition offer at a $50M valuation, though the cap table meant founders netted only $8M after investor distributions.
Origin
General business/finance terminology
Fun Fact
Most startup employees sign agreements that leave them with pennies during an acquisition, assuming the company isn't underwater
Source: Venture capital and M&A terminology
Related Terms
Translate This Term
See “Acquisiton or Exit” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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