I think the period to exit hides a bigger problem – and that is about risk and commitment.

The chances of a broad mix of people (young CEOs and mates – or partners, experienced business angels and VC investors) all with different agendas, being able to stick to a single path and vision for 7 years is very unlikely.

I reckon you can keep this eccletic group together for 3 or 4 or perhps 5 years (ie worse case – after 3 years, you start to prepare for exit) but 7 years?

I think the real issue with the length to exit is that most business angels aren´t willing to go 7 years – and those that are, don´t believe a 7 year plan will hold together long enough to reach the exit.

The solution? Well, entrepreneurs need to get the first 3 years of growth out of the way before asking for cash – then the cash simply comes as a 4 year commitment to reach a more probable exit.

So, the real issue is – can entrepreneurs manage the first 3 years on their own? Well, if they can, the chances are that they’ll manage the last 4 years too!

br
Neil