David Teten

SEPTEMBER 16, 2014

That’s a sizeable amount, especially in comparison to the US venture capital industry, which similarly invests over $20 billion annually. In 2013, 298,800 angels invested in 70,730 entrepreneurial ventures, according to the 2013 Angel Market Analysis by the Center for Venture Research at the University of New Hampshire.

Angel Investor 114

Angel Investor Technical Review Venture Capital Pre-Money Valuation 114

Startup Professionals Musings

FEBRUARY 5, 2018

I just finished a new book, “ Shortcut Your Startup ,” by the entrepreneur brothers Courtney and Carter Reum, and I like their summary of five critical changes in the market that every entrepreneur should capitalize on: Pervasive computer usage is now the great equalizer. Tools allow marketing in a much more targeted way.

IRR 143

IRR Marketing Startup Angel Investor 143

This is going to be BIG.

JULY 30, 2015

You incorporate expected company returns, mortality rates, and fee structures to try to predict how a venture capital fund works from a cash in, cash out, and NAV standpoint. And no, the numbers don't exactly add up--but they're more than close enough for venture capital. It's also not the "average fund".

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

Steve Blank

MARCH 31, 2014

Think about this; 7 years ago Nokia owned 50% of the handset market. Fast-forward to today—Apple is the most profitable Smartphone company in the world and in Spain Android commands a market share of more than 90%. Its worldwide market share of Smartphones has dwindled to 5%. Apple owned 0%.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Both Sides of the Table

MAY 24, 2021

The Valley has obsessed with a quick up-and-to-right momentum story because we were thought to live in “winner take most” markets. But markets have changed and I think investors, founders and experienced executives who want to join later-stage startups can all benefit from playing the long game. It literally drove FOMO.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

Both Sides of the Table

OCTOBER 17, 2019

Just as I was getting the swing of things the world shifted beneath my feet and the stock market went into a free fall and venture capital all but shut down for nearly a year. Jason was a creator and saw a market opportunity that others didn’t. And my friend and Invoca co-founder Colin Kelley has done both.

IP 223

IP Intellectual Property IRR Cofounder 223

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. For the first 75 years of the 20 th century, when capital for new ventures was scarce, the smartest engineering talent went to corporate R&D labs.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Seeing Both Sides

SEPTEMBER 26, 2010

One of my favorite business school professors, Andre Perold , used to like to say that in ever transaction in the financial markets, there are only two types of actors: wolves and sheep. As you might expect, the wolves have the edge in the encounter, due to superior market information or negotiating position.

IRR 36

IRR IPO Entrepreneur LP 36

Up and Running

JUNE 17, 2013

We looked at the product, the market, and the management team, with some attention to defensibility and scalability, and we made our own intuitive comparisons of possible ROI. And Internal Rate of Return (IRR)? Finance angel investment IRR ROI venture capital' I trust my judgment on that.

IRR 71

IRR Flash Angel Investor Venture Capital 71

Andrew Payne

MARCH 25, 2009

The venture capital business is in the middle of a shakeout. For too long, venture’s been over-funded and over-staffed with homogeneity: the same kinds of partners, operating with the same fund model, looking at the same investments, in the same markets.

Venture Capital 40

Venture Capital IRR Capital Call Distribution 40

Tim Keane

JANUARY 12, 2010

Bottom Up Market Sizing » January 12, 2010.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.]   (If you plug in an IRR of 58.5%

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

David Teten

NOVEMBER 17, 2011

Projections were based on dozens of operational assumptions related to pricing, production, marketing spend, etc. Market assumptions including market share and macroeconomic data were also in order. Finally, financial assumptions such as capital structure and taxes had to be considered.

Employee 155

Employee IRR Startup Mexico 155

David Teten

JANUARY 28, 2013

The good news for Techcrunch readers: Every major study conducted to date has placed angel investors’ IRR between 18 and 38 percent, as summarized by my Partner John Frankel and Professor Robert Wiltbank in prior Techcrunch articles. Every major angel study conducted to date has shown high IRR.

IRR 114

IRR Angel Investor Angel Groups Cofounder 114

Growthink Blog

JUNE 3, 2014

Over the last three weeks, we have discussed the various factors that drive the 25% IRR return potential of the startup and emerging company investing class. To not be swayed nor frightened by the financial industry’s omnipresent marketing machine. The word that best describes a state of affairs like this is institutional.

Omaha 91

Omaha Accredited Investor IRR Silicon Valley 91

K9 Ventures

DECEMBER 14, 2008

In my previous post , I claimed that “Venture Capital is a people business in every sense of the word. Unlike investing in public markets, investing in early stage companies happens before those companies have a real business, when it is just a concept and a team, and sometimes not even a whole team.

IRR 99

IRR Bandwidth Venture Capital Early Stage 99

David Teten

AUGUST 21, 2019

Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? The RBI investor is motivated to help the company grow because that speeds up the pace of revenue payback, and therefore IRR. Companies Lighter Capital has funded on average have negative 14% net margins.” Aligned incentives.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

David Teten

MAY 8, 2012

As Steve Case has said, it’s ridiculous that anyone can gamble and be guaranteed to lose money, but there are strict regulations around who can invest in early-stage private companies and earn (in some cases) a 27% IRR on their capital. *. The Entrepreneurs Access to Capital Act helps to redress this. Start now! *

Securities and Exchange Commission 148

Securities and Exchange Commission IRR Entrepreneur Angel Investor 148

Growthink Blog

MAY 21, 2014

There were some great responses to my post last week as to the poor returns experienced by venture capital fund investors. Some suggested that the blame for this lied more with the very difficult market and deal conditions of the past decade than with the VC investment model itself. Investment Flexibility. Labor Arbitrage.

San Diego 72

San Diego Warrant IRR Investment Bankers 72

Both Sides of the Table

MAY 25, 2013

“I don’t know the exact math, but I hear it again and again: the top 2% of firms generate 98% of the returns in venture capital.” The better way to think about VC returns is, do the firms consistently beat alternative asset clases on an IRR basis to adjust for the increased risk and lack of liquidity? It is changing.

LP 374

LP Later Stage IRR Term Sheet 374

K9 Ventures

MAY 14, 2011

The limited partners may themselves run the gamut from individuals, family offices, venture capital funds to institutional LPs. As fiduciaries, the general partners of the uVC funds have to begin to focus on the dreaded VC I-word : IRR. However, there is a difference. Convertible Note or Preferred Stock. Preferred Stock.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

Up and Running

AUGUST 19, 2014

what’s behind your financials, your go-to-market strategy, your current traction in the marketplace, your competition and why you’re better, your intellectual property or “secret sauce,” your exit strategy, etc.). And what have been the pros and cons of taking venture capital? I also learned quickly that no two angels are alike.

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

This is going to be BIG.

MAY 16, 2016

There aren't many people who get the chance to analyze venture capital fund return data. Sounds like a huge amount, but only later does he say that only " 476 funds which had known Net IRR values, the overwhelming majority of which were from vintage 2002, or more recently." So what percent of the market is that?

Venture Capital 66

Venture Capital IRR LP .Net 66

Up and Running

DECEMBER 22, 2015

So, investors look for businesses that will grow fast and sell out to a bigger business, or register their stock for trading on one of the public stock markets, which is when the early investors cash out. And it gets worse—a lot of angels, in a lot of tech business markets, prefer high growth and deficit spending to profits.

Angel Investor 60

Angel Investor IRR Software Review Startup 60

David Teten

OCTOBER 15, 2013

ff Venture Capital has consistently generated a gross IRR on invested capital in excess of 30%, in a world where the average ten-year returns for venture capital firms are in the single digits. But what about venture capital firms? Now we can. Indiegogo is a ffVC portfolio company.

Venture Capital 114

Venture Capital Accredited Investor IRR Later Stage 114

Seeing Both Sides

APRIL 10, 2011

In May 1996, Open Market completed a successful IPO and more than doubled on the first day of trading, ending with a $1.2 billion market capitalization. In 1997, a Charles River Ventures fund yielded a stunning 15x return, backing such superstars as Ciena, Vignette and Flycast. We had recorded $1.8

IPO 48

IPO IRR Brazil Government 48

Steve Blank

JUNE 11, 2013

Sigh… What I should have been hearing is the search for the business model, specifically the progress on product/market fit, but I hear the fund raising story first at least 90% of the time. Does our product or service solve a customer problem (product-market fit)? The consequences of raising venture money. What is an IRR?

Venture Capital 333

Venture Capital IRR Liquidity Event Business Model 333

Steve Blank

JUNE 11, 2013

Sigh… What I should have been hearing is the search for the business model, specifically the progress on product/market fit, but I hear the fund raising story first at least 90% of the time. Does our product or service solve a customer problem (product-market fit)? The consequences of raising venture money. What is an IRR?

Venture Capital 225

Venture Capital IRR Liquidity Event Business Model 225

Startup Professionals Musings

MAY 9, 2011

My fourth investment, and the first one I led, was into a mobile applications company, which was also ahead of its time and never truly understood its market. But that one fell victim to rapidly developing technologies, the recession, and the collapse of the consumer electronics market, and is unlikely to return a significant profit.

New York 221

New York Accredited Investor Advisory Board IRR 221

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 “ The Age of the Unicorns ” noting — “Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists.” Emotional Biases.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Agile VC

NOVEMBER 13, 2012

There are some obvious structural reasons why a shakeout in the venture capital industry takes a long time. Typically this is when VCs “pre-market” or explicitly try to fundraise a new fund among existing and potential new LPs, only to be rebuffed. 2) Rebirth of Some Firms - Mobius Venture Capital is now defunct.

LP 154

LP Portfolio Venture Capital IRR 154

K9 Ventures

NOVEMBER 30, 2008

The business of venture capital is relatively young. The birth of modern-day venture capital (not considering the European monarchs financing explorations and projects as venture capital) can be traced back to American Research and Development, which was started by Georges Doriot.

IRR 48

IRR Venture Capital LP Early Stage 48

Venture Chronicles

JUNE 30, 2010

The sky is falling on the venture capital rainmakers. Over the past 10 years their quarterly internal rate of return (IRR)—the primary measure of VC success—was dismal, hovering in the single percentage points and sometimes dipping into negative territory. Many firms have struggled to market new funds.

IRR 36

IRR IPO Venture Capital Portfolio 36

David Teten

NOVEMBER 23, 2020

Blue Future Partners, a venture capital fund of funds, recently interviewed me on ESG in venture capital. For example, I’m an investor via ff Venture Capital in: – Plated.com is a meal kit company, delivering you the recipe and fresh ingredients to make a gourmet meal in your own kitchen.

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60