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

This is going to be BIG.

DECEMBER 28, 2013

Why give more airtime to someone whose peak of influence, and perhaps success, is clearly behind him--especially to talk about topics where he clearly isn''t adding value to the conversation. My total valuation multiple across that span is nearly 4x and the return rate is up over 110% IRR. What''s the coolest place to go to?

Venture Capital 164

Venture Capital Cofounder IRR Dilution 164

Berkonomics

OCTOBER 1, 2015

You will not be moving your IRR needle enough by grabbing a few extra dollars in a marginal sale, but you will incur the wrath of a number of stakeholders who would be more than willing to spread the word far and wide about your greedy ways. And that reputation will last for a long time in the entrepreneurial community.

Dividend 48

Dividend Preferred Stock IRR Participating Preferred 48

David Teten

AUGUST 21, 2019

This includes the application process, phone calls with us, conversations with co-founders, investors and counsel, etc. The RBI investor is motivated to help the company grow because that speeds up the pace of revenue payback, and therefore IRR. Soup to nuts. Aligned incentives.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Feld Thoughts

APRIL 21, 2016

” Fred and I have had some version of this conversation many times over the past twenty years as we both strongly believe the punch line. As Bill points out, many funds are sitting on huge paper gains which translate into large TVPI, MOC, gross IRR, or whatever the current trendy way to measure things are.

Marketing 70

Marketing Down Round Startup IRR 70

Up and Running

MARCH 6, 2019

But don’t quote me a damned IRR. Or the web subscription forecast that tracks web visits, conversions, conversion rate, pay-per-click results, email opens, and so forth. They are assumptions cascading on assumptions, presented as if they were statistical truth. Not discounted cash flow.

Net Present Value 87

Net Present Value Forecast IRR Oregon 87

Occam's Razor

OCTOBER 14, 2014

Outcomes of the conversations with your Finance team and Sr. 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%). Conversion rate is one of those metrics that I strongly encourage you only create benchmarks for from your own data. And other such things.

Analytics 133

Analytics Vertical Metrics Web 133

David Teten

MARCH 2, 2013

We thought that you’d be interested in our conversation. I recently had an extensive debate with Tom about why and whether small funds (like mine, ff Venture Capital ) tend to outperform large funds (like his).

LP 114

LP Securities and Exchange Commission Silicon Valley Venture Capital 114

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

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 current traffic’s conversion rate and yield. Asset approach.

Valuation 128

Valuation NPV Net Present Value IRR 128