Which term best describes the planned method for achieving investor returns?

The term that best describes the planned method for achieving investor returns is "Exit Strategy." An exit strategy outlines how investors will recoup their investments and realize profits, detailing the approach the startup intends to take to either sell the company, go public, or employ other mechanisms for investors to cash out. This strategy is crucial not only for attracting investors but also for guiding the startup’s efforts in aligning its growth and operational milestones towards a successful exit.

An exit strategy indicates the anticipated pathway for achieving liquidity for the investors, whether through mergers and acquisitions, initial public offerings, or other means, thereby providing them with a clear understanding of when and how they can expect to realize their returns.

While financial projections provide estimates of future financial performance and an investment thesis articulates the fundamental rationale for investing in the startup, they do not specifically detail the exit mechanisms. Market analysis, on the other hand, focuses on understanding the industry landscape and potential consumer demand, which supports strategic decisions but does not directly address how investors will be paid back. Thus, the exit strategy stands out as the most relevant term in this context.