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Helping startups hit a home run, VC Style

David Teten

Based on a range of sources, we believe that most funds with well-developed Portfolio Operator models have top-quartile returns (typically above 20% IRR in the relevant time periods). Analytics and Data Contributed Articles Portfolio Operations Private Equity Venture Capital' VC at around $20b a year.

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Valuing Startup Employee Options

David Teten

Needless to say, a lot of time and analytics was dedicated to the terminal value. By definition, IRR is calculated using amount invested, amount received at some point in the future, and time passed between the two cash flows.

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Benchmarking Performance: Your Options, Dos, Don'ts and To-Die-Fors!

Occam's Razor

If you've read my first book Web Analytics: An Hour A Day, you know that I've advocated this strategy since 2008! 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%). There are four reasons, again from Web Analytics: An Hour A Day, from 2008 (!):

Analytics 133
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As Populist as it May Feel, 98% of VCs Aren’t Dumb

Both Sides of the Table

The better way to think about VC returns is, do the firms consistently beat alternative asset clases on an IRR basis to adjust for the increased risk and lack of liquidity? I use analytics. You invest across many funds just as VCs invest across many companies. Here the data is not always kind to VCs. Agree whole heartedly.

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