Startup Professionals Musings

APRIL 3, 2012

Angels are typically high net-worth individuals, investing their own money, interested more in early or “seed” financing of amounts starting as low as $25K. Another rule of thumb is a target of 50% IRR (a discounted cashflow calculation). The basics are simple. Expected return rate. Marty Zwilling.

IRR 248

IRR Term Sheet Startup Valuation 248

This is going to be BIG.

JULY 30, 2015

Second, their dollars dollar cost average at cheaper entry prices. Here's another way to look at it--the cost of capital argument. I'd say no--they're taking money from the same endowments, high net worths and pension funds as everyone else. But what does the model say? 20% of the Seeds get acqu-hired at the 6 post.

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

Startup Professionals Musings

NOVEMBER 11, 2010

Angels are typically high net-worth individuals, investing their own money, interested more in early or “seed” financing of amounts starting as low as $25K. Another rule of thumb is a target of 50% IRR (a discounted cashflow calculation). The basics are simple. Expected return rate. Marty Zwilling.

IRR 225

IRR Startup Term Sheet Angel Investor 225

Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. These collective sets of documents form the basis of what somebody looking at investing would call “financial due diligence.”

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Up and Running

MAY 2, 2012

Internal rates of return and net present value. But don’t quote me a damned IRR. I’ll judge your projections for realism and credibility, but that’s sales, costs, expenses, cash flow, and other basic numbers. I’m glad they taught you that in business school. Not discounted cash flow. .

Net Present Value 142

Net Present Value IRR Texas Global 142

The Next Web

DECEMBER 16, 2012

Income-based valuations consider aspects like CAPM (capital asset pricing model), IRR (internal rate of return), NPV (net present value), WACC (weighted average cost of capital), NCF (net cash flow), and GAAP (generally accepted accounting principles). The quality, reliability and cost of site traffic.

Valuation 128

Valuation NPV Net Present Value IRR 128

David Teten

AUGUST 21, 2019

Lower processing cost. Much lower cost of capital, if company is highly successful. The cost of VC funding to a unicorn CEO can easily be the equivalent of paying well over 100% annual interest. The RBI investor is motivated to help the company grow because that speeds up the pace of revenue payback, and therefore IRR.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Occam's Razor

OCTOBER 14, 2014

Leaders (company is leaving China, our IPO is next week, 1,800 new stores are being opened in 180 days, our new IRR is 8%). Hence, over time, though the costs were reasonable, I've become shy about these resources as a source of value/quality. Any big shifts in investment (marketing, customer experience, team sizes, tools).

Analytics 133

Analytics Vertical Metrics Web 133

abovethecrowd.com

APRIL 20, 2016

In Silicon Valley boardrooms, where “growth at all costs” had been the mantra for many years, people began to imagine a world where the cost of capital could rise dramatically, and profits could come back in vogue. Do you feel the need to raise more capital quickly before the prices erode further and bring down your IRR?

IPO 40

IPO Term Sheet Silicon Valley Valuation 40