There are different exit strategies a venture capitalist can intend to get out of an investment. Initial Public Offering (IPO) or being bought out by a larger player in the industry are the most common options. Do Management Buy Out (MBO) can be one of the option?

MBO is a viable option. IPO is not the norm when it comes to VC investing. The number of companies that IPO is small compared to the number of companies that get VC funding. Management Buy Out could be written into the term sheet after a period of 5-10 years.