tech
April 19, 2026
The 12-month window
A lot of AI startups exist partly because the foundation models haven't expanded into their category yet. As many jokingly acknowledge, that won't last forever.
TL;DR
- Most companies have a 12-month period of peak business value.
- Successful exits often occur when founders recognize this peak and sell near it.
- Examples of companies selling at their peak include Lotus, AOL, and Broadcast.com.
- To aid in exit timing, pre-scheduling board meetings to discuss exits can remove emotion.
- The advice is especially pertinent for AI startups whose market position might be temporary.
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