For years, startup culture has treated valuation as the ultimate scorecard. Higher numbers signalled success, attracted talent, and generated headlines, even when the underlying business remained fragile. In today’s venture capital environment, that logic is being exposed. As exit timelines stretch and liquidity becomes harder to access, the difference between paper value and realised value has never mattered more.
“I’ve seen companies spend years optimising for valuation, only to realise too late that they had limited exit options,” says Alexander Kopylkov, an investor who has guided more than 20 European startups. “Exits aren’t something you plan for at the last minute. You have to start thinking about them early.”
From an investor’s perspective, this distinction is fundamental. Exits, not valuations, return capital. Whether through strategic acquisition, secondary transactions, or public listings, value is only realised when liquidity exists. Yet many founders still treat exits as a distant consideration, assuming they will naturally follow growth. That assumption has become increasingly risky.
The disconnect often begins during fundraising. “A higher valuation can feel like success and offer a sense of validation,” says Kopylkov, “but the terms attached to that capital, the expectations it sets, and the investors it attracts impact the company’s trajectory.” Over time, those choices can reduce flexibility, limiting options when it comes to potential acquirers or exit opportunities.
This is where founders sometimes poorly assess the trade-off. In practice, early decisions around capital structure and governance tend to shape exit outcomes more than founders expect. Choices related to board composition, voting rights, and liquidation preferences often appear technical at first, yet they influence how much control a founding team retains during acquisition discussions. Over time, these factors can narrow the pool of potential buyers or complicate negotiations, even when a company shows strong operating performance. Founders who review these elements early tend to preserve more strategic flexibility as the business matures. In pursuit of headline numbers, they may accept structures that push the company towards unsustainable growth or misaligned incentives. While this can boost growth in the short term, it can also undermine business positioning amid market fluctuations or acquisition talks.
Kopylkov’s approach reflects a more measured view of value creation. With a background spanning engineering, real estate, and venture capital, his investment philosophy places exit readiness at the centre of company building. Rather than treating liquidity as a future event, he encourages founders to think early about who might buy the business, under what conditions, and why.
“A strong valuation should be the result of fundamentals and not the objective,” he says. “Companies that understand their economics, governance, and strategic relevance are far better positioned when exit opportunities arise.”
The European context makes this thinking particularly important. Market structure adds another layer of pressure. Many European startups operate across multiple jurisdictions, each with its own regulatory and commercial constraints. That reality places added value on predictable operations, clear ownership, and disciplined financial reporting. Buyers often prioritise clarity over aggressive projections, especially when cross-border integration is involved. Companies that address these factors early tend to move through acquisition processes with fewer delays and lower execution risk. Compared with the US, Europe has fewer large technology acquirers and a more selective IPO market. Optimising solely for valuation without regard for regional exit dynamics can leave companies stranded between funding rounds and realistic liquidity paths.
As venture capital moves further away from growth at all costs, exits are no longer a secondary consideration. They are a strategic lens through which growth, capital raising, and leadership decisions must be made. For founders building companies intended to last, understanding this early is a competitive advantage.
