Startups usually exit through an M&A, SPAC, or IPO. Startup exit is like the startup's grand finale, or so to say, where the startup transitions either from a privately held company to a public company. Now, why is having an exit plan so crucial for startups? Let’s start with an illustration: startups are like adventurers on a thrilling journey. They invest their time, effort, and resources into building something innovative and disruptive. Then, just like any adventure, they need a destination in mind. An exit plan acts as this destination. That guides the startup toward a profitable end (exit).

That being said, startups are typically built on a foundation of passion, innovation, and the desire to disrupt existing industries. Still, they also need to consider the financial aspect. Investors who provide funding to these startups expect returns on their investments (ROI). An exit plan helps ensure that these investors can cash in on their bets and reap the rewards of their support.

Moreover, an exit plan provides a clear path for the startup's future growth and sustainability because it opens up new opportunities for further innovation. An exit plan further provides the necessary resources, expertise, and market access to propel a startup to new heights. In the first quarter of 2023, five startups exited the industry with more than a billion dollars. These startups are:

1. Scopely 
2. Mint Mobile
3. NJOY
4. Intuitive Machines
5. Lanzatech

Let's explore each of these startups and uncover their fascinating stories of success and exit strategies.

Scopely

Scopely is a prominent player in the mobile gaming industry and is known for its innovative approach to game development and publishing. The company has its headquarters in Culver City, California, United States. It was founded in 2011 by Walter Driver, Ankur Bulsara, Eric Futoran, and Eytan Elbaz. Scopely has rapidly gained recognition for its ability to create engaging and immersive gaming experiences across various genres. The company operates on a unique business model, collaborating with both established entertainment brands and independent game studios to bring popular titles to mobile platforms. 

Its expertise lies in developing games that combine captivating storytelling, stunning visuals, and addictive gameplay mechanics, attracting a massive and dedicated user base. In terms of funding, Scopely has enjoyed significant investment throughout its journey. Over the years, the company raised a total of $999 million in funding rounds. What was Scopely's exit strategy? In its quest to further scale its operations and expand its reach, Scopely exited with the merging and acquisition strategy. The company was acquired by Savvy Gaming Group for $4.9B on April 5, 2023.

Mint Mobile

Mint Mobile, founded in 2016 by David Glickman and Rizwan Kassim with headquarters in Costa Mesa, California, United States, is a disruptive force in the telecommunications industry. The company's mission is to challenge the status quo of expensive mobile plans by offering affordable and flexible wireless services to its customers across the globe.

Mint Mobile differentiates itself through its unique business model, which operates entirely online without the need for traditional physical stores. By eliminating the overhead costs associated with maintaining physical retail locations, Mint Mobile provides cost-effective plans without compromising on the quality of service or network coverage. To some extent, the company enjoys an offer advantage because its approach resonates with budget-conscious consumers seeking reliable mobile services at affordable prices.

Since its inception, Mint Mobile has garnered significant attention and support from investors. The company successfully raised substantial funding from various sources, including private investors and strategic partnerships. This financial backing has enabled Mint Mobile to invest in infrastructure, technology, and marketing efforts, strengthening its position in the competitive telecommunications market. Mint Mobile adopted the merging and acquisition exit strategy just like Scopely in its pursuit of growth and further market penetration. Mint Mobile was acquired by T-Mobile for $1.4B on March 15, 2023.

NJOY 

Also known as NJOY Vapes and NJOY E-Cigarettes is a pioneering company in the vaping industry, with headquarters in Scottsdale, Arizona, United States. NJOY has been at the forefront of transforming the way people experience nicotine consumption. Founded in 2006, NJOY aimed to offer smokers an alternative to traditional cigarettes through innovative vaping products that prioritize both health and technology.

NJOY's products utilize advanced technology to deliver nicotine vapor without the harmful combustion byproducts associated with traditional tobacco smoking. Focusing on creating a satisfying and enjoyable vaping experience, has offered NJOY a dedicated customer base. Throughout its journey, NJOY successfully raised $494.3M in funding to support its growth and research efforts. NJOY achieved its exit through a Merger and Acquisition (M&A) deal. The startup was acquired by Altria for $2.8B on Mar 6, 2023, and this deal was done in Cash.

Intuitive Machines

Intuitive Machines was founded by Kam Ghaffarian, Stephen Altemus, and Tim Crain. Its headquarters is in Houston, Texas, United States. Intuitive Machines is a groundbreaking company that is shaping the future of space exploration with its innovative approach to developing advanced aerospace technologies. Founded in 2013, Intuitive Machines has rapidly emerged as a key player in the commercial space industry, pushing the boundaries of what is possible in space missions.The company specializes in designing and building autonomous robotic systems for space exploration.

Its services include lunar lander development, payload integration, and mission operations. Intuitive Machines' cutting-edge technologies and expertise enable organizations to embark on lunar missions, conduct scientific research, and deploy payloads in space. Intuitive Machines has successfully raised 1 round. This was a Seed round raised on Jan 1, 2013. The company opted for SPAC as its chosen exit strategy. The company exited with a value of $1.2B on February 8, 2023.

Lanzatech

LanzaTech is a pioneering startup at the forefront of the sustainable fuels and chemicals industry. Founded in 2005 by Sean Simpson, its headquarters is in the Greater Chicago Area, Great Lakes, Midwestern US. The company has been dedicated to developing innovative technologies that convert carbon emissions from industrial processes into valuable products, thereby reducing the environmental impact of these emissions.

The core focus of LanzaTech's operations lies in the development of novel gas fermentation processes. These processes harness microbial capabilities to transform waste gasses. Such as carbon monoxide and carbon dioxide, into useful fuels and chemicals. By repurposing and converting these emissions, LanzaTech plays a crucial role in addressing climate change and promoting a circular economy.

Since it was established, LanzaTech has successfully raised a total of $841.4M through funding to support its groundbreaking research and development efforts. LanzaTech achieved its exit through the SPAC strategy and exited with a value of $2.0B on February 24, 2023.

Conclusion

These 5 startups made significant exits in the first quarter of 2023, solidifying their impact in their respective industries. Scopely, Mint Mobile, NJOY, Intuitive Machines, and LanzaTech showcased their innovation, secured substantial funding, and executed well-defined exit strategies. These successful exits portray the potential of startups to disrupt industries, attract investment, and shape the future of business. As the startup ecosystem continues to evolve, these stories serve as inspiring examples of entrepreneurial success and the importance of strategic planning for growth and exit opportunities.

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