off-ramp

Definition

A business and startup jargon term describing an exit strategy or way to gracefully exit a situation, deal, or initiative. Think of it as the metaphorical highway exit when the original plan isn't working out.

Example Usage

The investors are looking for an off-ramp from this underperforming portfolio company by the end of Q3.

Source: Venture capital and startup industry terminology

Related Terms

Advanced

tag-along rights

Provisions allowing minority shareholders to join a sale if majority shareholders exit—the friendlier sibling of drag-along rights. It's protection ensuring you can't get abandoned while insiders cash out.

🚀 Startup / VC

Intermediate

prospectus

The glossy sales document that makes every investment opportunity look like the next Amazon and every university look like Hogwarts, carefully balanced between legal obligation and marketing fantasy. In startup land, it's the formal document that transforms 'three guys in a garage with an app idea' into 'disruptive technology platform poised for exponential growth.' Every prospectus contains enough disclaimers to absolve everyone of everything while somehow still convincing you to hand over your money.

🚀 Startup / VC

Beginner

Board of Directors

A governing body that theoretically oversees your startup but mostly just attends meetings and questions your decisions, led by the investors who own significant stakes.

🚀 Startup / VC

Beginner

unit economics

The revenue and costs associated with a single customer or transaction, supposedly proving your business model works before you scale. Often the awkward math that reveals you lose money on every sale but plan to make it up in volume.

🚀 Startup / VC

Beginner