Exit routes, investor type, and the Covid-19 crisis: Insights from UK equity-funded companies

• Companies funded by active investors are more likely to exit successfully. • Crowdfunding and angels are associated with lower probability of successful exit. • High technology sectors augment the likelihood of favourable outcome. • In 2020, investors held off on exits waiting for a clearer economic landscape. Using a sample of UK equity funded companies, we examine differences in the exit strategy of companies funded by distinct investor types and operating in various technology intensive sectors during a period of crisis. Our results corroborate the hypothesis that investor involvement through oversight and imparting expertise augments the likelihood of favourable outcomes. This is particularly evident in high technology sectors. We observe increased exit activity amidst the crisis and notable disparities, contingent upon investor type, concerning chosen exit pathways.