Which of the following statements regarding exit strategies is FALSE?
◦ An alternative way to provide liquidity to its investors is for the company to become a publicly traded company.
◦ An important consideration for investors in private companies is their exit strategy or how they will eventually realize the return from their investment
◦ Roughly 25% of venture capital exits from 2001-2005 occurred through mergers or acquisitions.
◦ Often large corporations purchase successful start-up companies. In such a case, the acquiring company purchases the outstanding stock of the private company, allowing all investors to cash out.