Remove Distribution Remove Metrics Remove Seed Stage Remove Valuation
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Seed Stage Firms are Dead, Long Live Micro VCs

Genuine VC

It’s clear that despite the varied terminology (Super Angel, Micro VC, Seed Stage VC, Seed Firms, etc.), The traditional VCs which have recognized the demand-side issue have launched numerous (sometimes high-profile) separate special programs and initiatives to play at the seed stage, to varying degrees of success.

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IRR is a vanity metric

VC Adventure

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. A lot changes in that period of time.

IRR 116
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State of VC 2.0

View from Seed

Warning – this assumes some basic knowledge of VC performance metrics. That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. Ok, let’s jump in. Source: Cambridge Associates.

Valuation 319
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State of VC 2.0

View from Seed

Warning – this assumes some basic knowledge of VC performance metrics. That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. Ok, let’s jump in. Source: Cambridge Associates.

Valuation 295
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State of VC 2.0

View from Seed

Warning – this assumes some basic knowledge of VC performance metrics. That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. Ok, let’s jump in. Source: Cambridge Associates.

Valuation 156
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

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.

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The New Venture Landscape

K9 Ventures

Instead, it was more of a result of over-funding at the seed stage. There was simply too much money coming in to the seed stage, which increased the supply of companies at the seed stage. The low supply and high demand is driving up the valuations and deal sizes. The seed round is bigger. . (~6M-$15M

Mezzanine 134