Due Diligence IRR Sales Technical Review 
David Teten
JANUARY 19, 2021
Our categorization is not a technical one. Additionally, Flexible VC can accommodate all types of companies, not just asset-lite, tech-enabled companies.”. 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.
Up and Running
AUGUST 19, 2014
I have pitched to hundreds of angel investors over the years as a result of co-founding two tech companies and raising just shy of $1M in angel capital. My favorite part of pitching to them was the due diligence process. Forget the stupid IRR (that’s internal rate of return) that they taught you in business school.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Up and Running
DECEMBER 22, 2015
My personal favorite in the “pure nonsense category” is the IRR, the Internal Rate of Return , something that was interesting for about one hour as part of the MBA curriculum, but which has no relevance in the real world. Angel investors are not impressed by projections of 30-40-50% or more profits on sales.
Tim Keane
JANUARY 12, 2010
It also assumes the entire value of the investment is captured for investors at a sale of the company in the time specified in the term-sheet. If you look at the spreadsheet, you will see that the “Required Rate of Return” is expressed as an IRR. Internal Rates of Return naturally compound, so a 50% IRR is 7.59
abovethecrowd.com
APRIL 20, 2016
In late 2015, many public technology companies saw a significant retrenchment in their share prices primarily as a result of a reduction in valuation multiples. In Q1 of 2016 there were zero VC-backed technology IPOs. Do you feel the need to raise more capital quickly before the prices erode further and bring down your IRR?
Expert insights. Personalized for you.
78 
Let's personalize your content