Two of the most common ways startups exit is via initial public offering (IPO) or acquisition.
But what about an “exit to community”?
That’s what a growing number of founders are pushing for. It’s a new way to exit in which a startup transfers ownership, decision making and profits to a large group of people — including employees and users.
Investors can look to crypto to see this kind of exit in action. It’s common practice for crypto projects to create decentralized autonomous organizations and distribute tokens among the community who helped build the project. And those token holders then have the ability to vote on future decisions for the project.
In this episode of Angel Insider, Vin Narayanan and Allison Brickell discuss how crypto is leading this trend, how popular this exit may become and more.
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