top of page

From Startup Fundraising to Exit: The Complete Guide for Startups Growing in 2024’s Technology and AI Boom

  • Writer: asantos31
    asantos31
  • Apr 28
  • 4 min read

In today's market, startups are no longer just disruptors; they are the prizes.

 Major corporations are aggressively hunting the next innovation to stay ahead, especially in the technology and AI startup sectors.

Companies like Cohere, Runway, and even public players like Instacart are proving one thing:

If you build strategically, manage your business with discipline, and position correctly, your startup becomes a must-have asset.

Let's examine why these startups are in high demand and what founders must learn to survive, scale successfully, and exit successfully.



The AI Gold Rush: Why Cohere and Runway Are the Prizes Everyone Wants


The race to dominate artificial intelligence is fiercer than ever.

 Startups like Cohere and Runway are prime examples of how quickly market dynamics have shifted.


Startup What They Do Why They Matter


AI language models for enterprises (competing with OpenAI). Enterprises want control over AI; they do not want to rely solely on OpenAI or Anthropic.



From startup frundaaising to exit


AI video generation (text-to-video). In a world increasingly driven by video content, Runway's technology allows companies to create stunning videos from text inputs, revolutionizing marketing and production.


Big Tech: Amazon, Google, Meta, and Microsoft are not just investing in these AI startups; it is trying to acquire them to solidify their leadership positions (TechCrunch, 2024).


Runway, in particular, has exploded in relevance, with brands, marketers, and creative agencies now demanding faster, AI-generated video content (The Verge, 2024).



Instacart: When an IPO Creates an Acquisition Opportunity


Not all acquisition targets are early-stage.

Instacart, the grocery delivery giant, went public in late 2023, but the IPO market was rough.


Let's look at the Instacart Situation closely:

Valuation Once $39B privately → IPO launched around ~$10B

Growth Slowing post-pandemic, facing new competition

Status: Attractive acquisition target for companies like Walmart, Kroger, or Amazon

Going public revealed vulnerabilities: slowing user growth, margin compression, and stiff competition from Walmart and Amazon's delivery services (CNBC, 2023).


According to Reuters, several major retailers have already been eyeing Instacart as a potential acquisition to strengthen their logistics capabilities (Reuters, 2024).



startup fundrasing to exit


From Startup Fundraising to Exit: Strategic Advice for 2024–2025


At Into The Next, we work closely with founders to help them survive and thrive, building businesses that attract strategic buyers, investors, and partners.


Here is the advice every startup, technology startup, and AI startup needs to internalize:


1. Build Defensible Technology (Not Just "Cool" Tech)


Acquirers do not just want features.

 They want foundational technology that plugs into their ecosystem, tech they cannot easily replicate.

For AI startups:

 Focus on building proprietary models, data advantages, or unique platform integrations.

 Generic models will quickly become obsolete.


2. Control the Narrative Early


Founders underestimate the power of storytelling.

 Whether raising capital or preparing for an acquisition, you must control how your startup is perceived.


Strong storytelling:

  • Clarifies your market position.

  • Differentiates you from the noise.

  • Elevates your perceived value.

Pro tip: Start sharing your journey through press releases, blogs, podcasts, and thought leadership as early as possible.


3. Financial Management Is Non-Negotiable


Having a fractional CFO for startups is one of the smartest investments you can make today.

A fractional CFO ensures:

  • Clean, credible financials.

  • Strong unit economics.

  • A clear path to profitability or strategic growth.

When acquirers or investors examine your numbers, they value your revenue and the predictability and scalability of your financial model.



4. Plan Your Fundraising With Exit In Mind


Your fundraising strategy for startups should not just be about raising money for the next 18 months.

 It should align with your exit planning goals.

Before your next round, ask:

  • How will these investors affect my exit options?

  • Am I raising the issue of terms that allow flexibility later?

  • Does this round position me for strategic acquisition?

At Into The Next, we advise founders to always raise money with a "future buyer" in mind, whether an acquirer or public investor.


5. Exit Planning Is a Growth Strategy, Not an End Game


Exit planning does not mean you are trying to sell tomorrow.

 It means building operational excellence today that maximizes future optionality.

Key steps in exit planning:

  • Audit your legal, financial, and IP risks early.

  • Build partnerships and alliances that increase your strategic value.

  • Focus on building a leadership team that can operate without you.

Exit planning is not a defensive move; it is a growth strategy.

 The best acquisitions and exits happen when founders are in control, not when they are scrambling.


Final Thoughts


2024–2025 will continue to be a watershed moment for startups.

 The AI startup boom and shifting IPO markets create unprecedented acquisition opportunities — but only for those who build intentionally.

Cohere and Runway are teaching startups how to become "can't-miss" acquisitions by focusing on innovation, brand strength, and strategic positioning.

 Instacart reminds us that even giants must stay nimble, especially after going public.

At Into The Next, we specialize in helping founders prepare, from business management for startups to fractional CFO services, fundraising strategy, and exit planning.

If you want to build a startup that investors and buyers cannot afford to ignore,


Your next phase is just the beginning.


Resources:


1-TechCrunch. (2024, March 20). Cohere partners with Google Cloud to expand enterprise AI services. TechCrunch. https://techcrunch.com/2024/03/20/cohere-partners-google/

2-The Verge. (2024, April 5). Runway raises Series D as AI video generation heats up. The Verge. https://www.theverge.com/2024/04/05/runway-ai-video-creation-valuation

3-Franck, T. (2023, September 19). Instacart priced its IPO at $30 a share, valuing the grocery delivery company at about $10 billion. CNBC. https://www.cnbc.com/2023/09/19/instacart-ipo-prices.html

4-Reuters. (2024, January 5). Instacart may attract bidders post-IPO. Reuters. https://www.reuters.com/markets/deals/instacart-may-attract-bidders-post-ipo-2024-01/

 
 
 

Comments

bottom of page