5 tips to guide the choice between pursuing Fundraising or a strategic exit via M&A

In addition to all the challenges faced by entrepreneurs, one of the biggest and least discussed is the continuous development of the company's potential for the capital market, that is, keeping the company attractive to investors and buyers.

But how do you choose whether to prioritize fundraising or a strategic exit via M&A?

There is no algorithm for this decision, but we have listed 5 main factors to guide you in this choice.

1- Always carefully consider the opportunity to execute a transaction with the potential to generate returns for shareholders, liquidity and a cycle change for the founders and team;

2- Never depend on a single alternative. One of the best practices in M&A and Corporate Development is to prepare for different scenarios;

3- Double down in the VC track always brings a huge responsibility for founders and investors: projects, personal aspirations and incentives must be aligned to justify the added years of challenge;

4- Valuation is a dynamic variable that depends heavily on market conditions. There are transactions with relatively low prices that strategically have great value, and the opposite is also true;

5- Always keep in mind that "the unexpected happens unexpectedly".

Fundraising and M&A conditions can change suddenly due to geopolitical, economic or technological disruption.

The amount likely today may not be available - or may be much lower - tomorrow.