Steve Blank

MARCH 31, 2014

Cheered on by finance professors, Wall Street analysts, investors and hedge funds, companies have learned how to make metrics like Internal Rate of Return look great by one; outsourcing everything, two, getting assets off their balance sheet, and three only investing in things that pay off fast.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

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

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. It’s a lot easier to get these numbers to look great by outsourcing everything, getting assets off the balance sheet and only investing in things that pay off fast.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

David Teten

JULY 10, 2017

Many large corporations face three seemingly disconnected challenges; they want: – Better returns on their balance sheet and underfunded pensions; – Access to the innovation economy to stay on top of the early-stage companies attacking their business; and.

Employee 60

Employee Balance Sheet Syndicate Syndication 60

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

David Teten

NOVEMBER 17, 2011

We had a simple balance sheet by financing round model in our earlier master template financial model , but this model is more suitable for use in employment negotiations. By definition, IRR is calculated using amount invested, amount received at some point in the future, and time passed between the two cash flows.

Employee 155

Employee IRR Startup Mexico 155

Ben's Blog

AUGUST 17, 2020

If an investor could have identified Salesforce’s ability to maintain such prolonged growth upfront, invested in its 2004 IPO, and then held on through to today, they could have made ~70x returns: equivalent to ~30% IRRs over a 16 year period. Not too shabby!

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36