Steve Blank

JUNE 23, 2016

As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency. Here are four reasons: First, companies bought into the false premise that they exist to maximize shareholder value – which said “keep the stock price high.”

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Berkonomics

JANUARY 6, 2022

The result is that the preferred shareholders would receive ninety percent of a sales price (nearly was double their investment), compared to the remaining ten percent shared by the founders and all others, including angel investors and option holder-employees. Here comes the headline: So, this advice is directed to those investors.

Dividend 62

Dividend IRR Preferred Stock Participating Preferred 62

Hunter Walker

NOVEMBER 13, 2018

It’s essentially a private IPO where early investors, founders and employees get some liquidity and Softbank gets minority ownership, maybe a Board seat. Which means as a seed investor, I’m thrilled to see Softbank invest. Yippee, go Masayoshi Son!!! Cool, cool. This* is a more complicated situation for seed investors.

Cap Table 95

Cap Table IRR IPO Early Stage 95

Tim Keane

JANUARY 12, 2010

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   (If you plug in an IRR of 58.5%   Internal Rates of Return naturally compound, so a 50% IRR is 7.59 times at 5 years and 11.39

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

MAY 9, 2011

Luckily for me (and regardless of what anyone else says, there is a lot of luck involved in angel investing), I have since had significant positive exits to companies like Kodak, CBS and Facebook, and the current value of my portfolio is approaching the 30% IRR that rational angels target. David: Being an entrepreneur is tough.

New York 221

New York Accredited Investor Advisory Board IRR 221

K9 Ventures

DECEMBER 14, 2008

When it comes to helping portfolio companies grow, it is the people relationships that matter most — can you open doors to prospective customers, employees, partners, lawyers, accountants, bankers and of course other investors. Lets assume that Shylock Ventures is capable of producing a 20% IRR on a $100M fund.

IRR 99

IRR Bandwidth Venture Capital Early Stage 99

VC Cafe

JULY 2, 2012

Lots of returns are being made these days, but the latest CalPers report shows dissapointing returns by Israeli VC firms , with an IRR of 3.5%-3.8% Stanley intends to use the 200 employees of AeroScout to establish an R&D center in Israel built around the existing AeroScout framework. FACEBOOK BUYS FACE.COM FOR $100M. Facebook Inc.

Latvia 109

Latvia Lithuania Russia 109

Feld Thoughts

APRIL 21, 2016

Also, they have a strong belief that any sign of weakness (such as a down round) will have a catastrophic impact on their culture, hiring process, and ability to retain employees. If you are a founder, an employee in a startup, or an investor in a startup, you have to be playing a long term game. Long term is not a year.

Marketing 70

Marketing Down Round Startup IRR 70

Berkonomics

OCTOBER 1, 2015

The result is that the preferred shareholders would receive ninety percent of a sales price that was double their investment, compared to ten percent shared by the founders and all others, including option holder-employees. No-one complains if the sales price is ten times the investment, since there is plenty to go around.

Dividend 48

Dividend Preferred Stock IRR Participating Preferred 48

abovethecrowd.com

APRIL 20, 2016

All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. And there are also modern examples of investors beating the founders and employees out the door.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Professor VC

MARCH 10, 2009

His latest venture, Bharosa, was sold to Oracle for a 6X multiple in 3 years to his angel investors, a sweet close to triple digit IRR. Certainly not to say they couldnt have raised more cash and built this in to a bigger company, but was nice to have the option of going either way and doing what was right for the founders and employees.

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Software Review 28

Professor VC

JANUARY 17, 2008

If my math is correct, this is approximately a 31% IRR, which has to beat individual angel investments on aggregate and venture capital returns over the period of the study (1990-2007). There needs to be enough equity to go around for founders, early investors, later investors, and employees. return on investment after 3.5

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

K9 Ventures

NOVEMBER 30, 2008

The money that the GPs and other employees of the firm invest comes from Limited Partners (LPs) — typically the big university endowments, retirement funds, charitable organizations, family offices and high net-worth individuals. For what I’ve seen/heard the tops VC funds typically have an IRR of over 20%.

IRR 48

IRR Venture Capital LP Early Stage 48

K9 Ventures

MAY 14, 2011

They are generally high net worth (accredited) individuals who have done well in their career, either as entrepreneurs or as executives and early employees at some of the companies that have done well (in the Valley that usually means Paypal, Google, Facebook etc). Most angels will usually invest under $50K per investment.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125