If the startup you’re investing in doesn’t have an exit strategy — why would you invest?
This isn’t a theoretical question.
Seriously, why would you invest in an equity Crowdfunding company if no exit strategy is planned?
Here at Vegan Investing Club, we think you shouldn’t.
Let’s go back to defining an exit strategy. Exit strategy: a startup’s strategy to sell all, or part, of the company so early investors can get their profit. The most common way for early investors to see a return on their money is through acquisition or IPO.
Vegans are rightfully skeptical of corporate interests.
“They’re the reason we’re in this predicament after all!”, exclaimed the vegan activist.
Agreed. Yet, vegans want their investments to align with their values. For example, investing in Gardein, a legacy line of meat substitutes that has been highly accessible at most U.S. grocery stores, would have been smart investment because ConAgra Foods Inc. took notice of their market impact and bought the company! The same thing happened with Earth Balance, the go-to vegan butter alternative.
Gardein and Earth Balance had an exit strategy which was acquisition by a larger company.
Have you heard of Natural Order Acquisitions? It’s okay if you haven’t! We bring them up because they were the first vegan special purpose acquisition company in history. They were very, very direct with their exit strategy: IPO. They went public on October 13, 2020.
Does your fav vegan startup have one?
If not, reconsider your investment and seek out a vegan crowdfunding that has a clear strategy to make a BIG impact in the world while also getting you a return on your money.
The Team at Vegan Investing Club