There are two other exit options for VC fund investors seeking to sell their partial or full ownership's stake in a startup company. These are a share buyback or a secondary sale.

A share buyback, also called management buyout, or repurchase occurs when the VC fund sells a portion of their shares back to the founders. The founder's ownership stake will increase, which may have an impact on who has control of the business.

A secondary sale or refinancing occurs when a VC fund sells a portion or all of their shares to another VC fund or institutional investor. In both options, a VC fund may be looking for a liquidity event to return some capital to their limited partners. This is especially relevant where an IPO or sale are not viable options. Startup companies that pursue a partial or complete sale via a secondary sale are not widely reported on. These are typically sales that are completed privately because the sale is essentially a transfer from one VC investor fund to another or to another private investor. Finally, we come to a liquidation or bankruptcy, which is the least optimal exit strategy for founders and VC fund investors. In the case where a startup company must end their operations or liquidate due to the inability to pay obligations, any remaining assets are sold often at a discount to pay off outstanding debts. The residual value, if any, would be divided among existing shareholders. This is clearly not the outcome anyone wanted.