Distribution Finance LP Metrics 
View from Seed
DECEMBER 4, 2019
At the time, I spent most of my time describing the metrics themselves and how VCs and their LPs evaluate performance based on these measurements. If you aren’t familiar with these metrics, I recommend reading the original post to get a sense of the numbers that I’ll be reviewing here. The top quartile has distributed 2.03x (vs.
VC Adventure
MAY 5, 2022
I’m observing that IRR is a metric that is becoming an increasing focus in venture, replacing fund return multiple as the key metric of success. I understand the draw of IRR, and – as a fund draws to a close – there’s no question it’s an important metric. management fee). Many will not. But not now.
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David Teten
DECEMBER 3, 2019
Tim Friedman, Founder, PE Stack , said, “If I could offer one piece of advice to today’s managers, it would be to take the time to understand the demands of the modern institutional LP. We are also seeing technology evaluation as an increasingly important part of LP operational due diligence.
David Teten
JANUARY 19, 2021
This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. . Flexible VCs have created structures based on other company performance metrics than revenues, such as profits or founder salaries. Flexible VC 102: Variations.
View from Seed
DECEMBER 11, 2019
Yes, there are intermittent points of feedback along the way, like valuation marks from subsequent rounds of financing. Venture is a field with a power-law distribution of outcomes. Calibrated against the firm’s overall velocity (which can vary), this metric is a tell-tale about a Partner’s standing with their peers.
Austin Startup
JUNE 26, 2019
By the by, women donors, I recommend diversifying some of your capital distributions to reap that ROI to keep doing good… (+ this is a whole ‘nother blog post…) Undeterred. Related: when people say that execution is the most important metric of who will win, keep in mind that executing a fundraise is almost paramount. That’s a metric!
Startup Lessons Learned
MAY 4, 2021
Can institutions be totally distributed or should they be rooted and loyal to a certain community or geography? And of course, I wasn't really interested in the finance side of it to me. And so, all of a sudden, you have finance, and compliance, and bankers, and folks like that. Do we need more regulation in this area or less?
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