David Teten

JANUARY 19, 2021

See Why Are Revenue-Based Investors Investing in Women & Diverse Entrepreneurs? This causes the cost of capital for Flexible VC, often calculated through IRR (similar to an interest rate), can be higher than that of venture debt or traditional RBI. 20-30% is a common target IRR for investors. Emily Campbell, Esq.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

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

David Teten

SEPTEMBER 16, 2014

Angel investors are generally former entrepreneurs and/or executives, who invest in privately-held, early-stage companies. Top performers conduct 40 hours or more of due diligence per investment and stick with companies as active advisors.[3]. Lastly, angels want to serve as mentors to the next generation of entrepreneurs.

Angel Investor 114

Angel Investor Technical Review Venture Capital New Hampshire 114

Gust

NOVEMBER 1, 2011

Based on the Wiltbank Study, investors should expect a 27% IRR in six years. Assuming our software entrepreneurs needs $500,000 to achieve positive cash flow and will grow organically thereafter, here’s how we calculate the Pre-money Valuation of this transaction: From above: Post-money Valuation = Terminal Value ÷ Anticipated ROI = $42.5

Venture Capital 161

Venture Capital Valuation Pre-Money Valuation Post-Money Valuation 161

Gust

APRIL 30, 2014

Having now invested in over 85 startups, and finding that my personal metrics are very similar to aggregated industry ones, it is clear that (a) there is little to no correlation between my home runs and my personal favorites, and (b) angel investing done correctly really *can* produce a consistent IRR in the 25%-30% range.

Angel Investor 148

Angel Investor IRR Due Diligence Aggregator 148

Tim Keane

JANUARY 12, 2010

Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.   Internal Rates of Return naturally compound, so a 50% IRR is 7.59

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Hippoland

NOVEMBER 13, 2016

When I was an entrepreneur, it never crossed my mind how VCs measure their success. So, as an entrepreneur, in many cases, you are pitching people who may not even be good investors. A common intermediary milestone for most investors is IRR (internal rate of return) of the fund. But I should have thought about it.

IRR 48

IRR Valuation Portfolio Due Diligence 48