Steve Blank

MARCH 4, 2014

A consequence of using these corporate finance metrics like RONA and IRR is that it ‘s a lot easier to get these numbers to look great by 1) outsourcing everything, 2) getting assets off the balance sheet and 3) only investing in things that pay off fast.

IRR 335

IRR Startup Business Model Agile 335

Hunter Walker

JULY 18, 2021

I never really tracked IRR or net returns, but I did pay close attention to ‘lessons learned.’ All in all it worked out fine, driven primary by some fortunate acquisitions to companies like Microsoft, Pinterest and Facebook, the latter two in pre-IPO equity which grew substantially prior to their public listings.

Cap Table 141

Cap Table IRR Angel Investor IPO 141

David Teten

SEPTEMBER 16, 2014

million households in the US with a net worth of $1 million or more. In 2013, 298,800 angels invested in 70,730 entrepreneurial ventures, according to the 2013 Angel Market Analysis by the Center for Venture Research at the University of New Hampshire. However, those angels constitute only about 4% of the estimated 7.1 Time Period.

Angel Investor 114

Angel Investor Technical Review Venture Capital Pre-Money Valuation 114

Steve Blank

JUNE 23, 2016

As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency. Here are four reasons: First, companies bought into the false premise that they exist to maximize shareholder value – which said “keep the stock price high.”

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

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.

IRR 248

IRR Term Sheet Startup Valuation 248

This is going to be BIG.

JULY 30, 2015

I'd say no--they're taking money from the same endowments, high net worths and pension funds as everyone else. So, whether you're doing Seed, Series A, or Series B, each round would get its net 25% to LPs, no? I honestly don't think the investors who are going into Uber are underwriting that bet to a 25% net return to investors.

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.

IRR 225

IRR Startup Term Sheet Angel Investor 225

Both Sides of the Table

MAY 19, 2018

Or if you’re a VC raising from LPs you have to list all of your deals, your investment value, your carrying value, your multiples, your IRRs, TVPIs, DPIs, etc along with net cashflows plus your previous LPAs. 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

MARCH 6, 2019

You focused on internal rates of return and net present value. I’m glad they taught you internal rates of return and net present value in business school. But don’t quote me a damned IRR. Tell me the story of what you have, where you are, how you got there, and who’s it for—let me decide the adjectives.

Net Present Value 87

Net Present Value Forecast IRR Oregon 87

David Teten

AUGUST 21, 2019

The RBI investor is motivated to help the company grow because that speeds up the pace of revenue payback, and therefore IRR. Companies Lighter Capital has funded on average have negative 14% net margins.” Aligned incentives. This is similar to the incentives of a traditional equity VC, but unlike traditional lenders.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Both Sides of the Table

MAY 24, 2021

as measured by MOIC, TVPI and IRR and by sources that don’t reveal the underlying data and who themselves have to rely on incomplete datasets. The method some LPs use to compare funds is called PME (public market equivalent ) but honestly my experience has been that benchmarking is really challenging for LPs (and VCs alike).

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

Up and Running

DECEMBER 22, 2015

My personal favorite in the “pure nonsense category” is the IRR, the Internal Rate of Return , something that was interesting for about one hour as part of the MBA curriculum, but which has no relevance in the real world. Read more of my articles related to this topic: You Can Take That IRR and Shove It.

Angel Investor 60

Angel Investor IRR Software Review Startup 60

K9 Ventures

MAY 14, 2011

They are generally high net worth (accredited) individuals who have done well in their career, either as entrepreneurs or as executives and early employees at some of the companies that have done well (in the Valley that usually means Paypal, Google, Facebook etc). Most angels will usually invest under $50K per investment.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

Up and Running

AUGUST 19, 2014

An angel investor is a high net worth individual who invests their own money into startup companies in the hopes of gaining a return on their money. Forget the stupid IRR (that’s internal rate of return) that they taught you in business school.

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

VC Cafe

MARCH 8, 2010

billion (net management fees and operational expenses). The Carmel I Fund, raised in 2000, had the highest performance, giving an internal rate of return (IRR) of 8% and a positive multiple of 1.4. Other funds, including Apax Israel II, Israel Seed IV and JVP showed negative IRRs of 20-30%.

IRR 74

IRR Venture Capital Institutional Investors 74

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%). Any big shifts in investment (marketing, customer experience, team sizes, tools). Outcomes of the conversations with your Finance team and Sr. And other such things. These were more important in the past.

Analytics 133

Analytics Vertical Metrics Web 133

This is going to be BIG.

MAY 16, 2016

Sounds like a huge amount, but only later does he say that only " 476 funds which had known Net IRR values, the overwhelming majority of which were from vintage 2002, or more recently." 3) You can't eat IRRs for breakfast. You know what the IRRs of Quirky and Fab were before they went to zero? Really really big.

Venture Capital 66

Venture Capital IRR LP .Net 66

Up and Running

MAY 2, 2012

Internal rates of return and net present value. But don’t quote me a damned IRR. They remind me of the old days when every software package claimed to be user friendly (and mine was the only one that really was). . I’m glad they taught you that in business school.

Net Present Value 142

Net Present Value IRR Texas Global 142

Hunter Walker

FEBRUARY 25, 2018

And to get to a target return of 4-5x net, it means we need to return 5 * $90 million (ie $450m) to our investors. Our J Curve and early IRR may look worse than other funds. And if you assume ~10% ownership for Homebrew, well, you can do the math on exit value requirements. Of course we think this’ll be to our advantage but….

Product 82

Product IRR LP Seed Stage 82

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). Asset approach.

Valuation 128

Valuation NPV Net Present Value IRR 128

Agile VC

NOVEMBER 13, 2012

a VC fund’s entire portfolio in aggregate, net of management fees and carried interest) a good return from an LP’s perspective would be 2.5-3.0x typically, which in most cases would to >20% IRR. So at a fund level (e.g.

LP 154

LP Portfolio Venture Capital IRR 154

K9 Ventures

NOVEMBER 30, 2008

The money that the GPs and other employees of the firm invest comes from Limited Partners (LPs) — typically the big university endowments, retirement funds, charitable organizations, family offices and high net-worth individuals. For what I’ve seen/heard the tops VC funds typically have an IRR of over 20%.

IRR 48

IRR Venture Capital LP Early Stage 48

Feld Thoughts

AUGUST 1, 2018

We are very long-term investors, focusing on net cash on cash returns, rather than short-term or intermediate IRRs. We are syndication agnostic, being indifferent between investing by ourselves or with co-investors – especially our partner funds – where we mostly have long and successful relationships.

Syndicate 17

Syndicate Syndication IRR Canada 17

abovethecrowd.com

APRIL 20, 2016

Do you feel the need to raise more capital quickly before the prices erode further and bring down your IRR? One easy way to spot these pretenders is that they obsessively focus on high level “gross merchandise value” or “multi-year forward bookings” and try to talk past things like true net revenue, gross margin, or operating profitability.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

David Teten

NOVEMBER 23, 2020

They provide retail clients with sophisticated risk management tools that previously only ultra high net worth investors could access. . Traditional KPIs are, in descending order of importance: IRR (and secondarily Multiple). Net Promoter Score from Founders we back. Net Promoter Score from Founders we reject.

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60