article thumbnail

What Does the Post Crash VC Market Look Like?

Both Sides of the Table

IRRs work really well in a 12-year bull market but VCs have to make money in good markets and bad. No blog post about how Tiger is crushing everybody because it’s deploying all its capital in 1-year while “suckers” are investing over 3-years can change this reality.

article thumbnail

Fundraising Hacks for Venture Capital and Private Equity Funds

David Teten

However, in the last few years a few have started to use social media and become more transparent. As an idea of how high the bar is for a GP, he says , “I dove into our fund log from the last couple of quarters and found that the mean IRR (among VCs listing one) was over 36%.” ” .

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Tim O’Reilly, CEO, O’Reilly Media, argues , “Blitzscaling isn’t really a recipe for success but rather survivorship bias masquerading as a strategy.” 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.

article thumbnail

Playing the Long Game in Venture Capital

Both Sides of the Table

Silicon Valley and the media industry that surrounds it values youth. innovated in social media advertising and for a variety of reasons wasn’t ultimately successful and went to zero. as measured by MOIC, TVPI and IRR and by sources that don’t reveal the underlying data and who themselves have to rely on incomplete datasets.

article thumbnail

ESADE Business School Commencement Speech

Steve Blank

It’s worth noting that everything from the Internet, to electric cars, genomic sequencing, mobile apps, and social media — were pioneered by startups, not existing companies. The convergence of digital trends along with the rise of China and globalization has upended the rules for almost every business in every corner of the globe.

article thumbnail

ESG in Venture Capital: Interview with Blue Future Partners (VC Fund of Funds)

David Teten

We ask our Ambassadors: “Do you have access to a media platform? Are you aware of the information that the media should know? Traditional KPIs are, in descending order of importance: IRR (and secondarily Multiple). Does your business touch potential voters? Firm revenues. Net Promoter Score from Founders we back.

article thumbnail

5 Ways Today’s Market Allows Startups To Scale Faster

Startup Professionals Musings

As a result of social media and mobile platforms, consumers have created a sharing economy – sharing their opinions, and speaking out to companies as well as their peers, rather than listening to brand advertising. Investors measure their success by looking at the internal rate of return (IRR).

IRR 143