Exit readiness is even critical in early-stage companies for the purpose of attracting venture capital (VC) funding. For start-ups and early-stage companies, securing VC investment can be a game changer. The VC investment itself provides the financial backing needed for the company to scale and grow. In addition, the VC investors often bring along key strategical thinking, access to relevant networks and professional governance models to the board of directors. However, VC investors don't just look for promising business ideas. They are also keenly interested in making sure that, for example, the target company’s day-to-day operations are sufficiently organized and compliant with applicable laws and regulations before making the final funding decision. VC investors are looking for substantial, in most cases short-term, return on their investment. For them, exit readiness means strategic planning and potential for a lucrative exit by way of a sale of the company/business or IPO. VC investors want to see that your business is poised for significant growth and that their investment will ultimately yield a high return. At the same time, a VC investment is inherently risky, and investors want to mitigate that risk as much as possible.