Both Sides of the Table
SEPTEMBER 15, 2022
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.
David Teten
MAY 16, 2017
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%.” ” .
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David Teten
JANUARY 19, 2021
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.
Steve Blank
MARCH 31, 2014
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.
Startup Professionals Musings
FEBRUARY 5, 2018
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).
Steve Blank
JUNE 23, 2016
Disruptive innovations are coming from startups – Telsa for automobiles, Uber for taxis, Airbnb for hotel rentals, Netflix for video rentals and Facebook for media. 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.
Both Sides of the Table
OCTOBER 17, 2019
An example was that while we were in the seed round at Ring and followed in the A, B, C and D … we were also able to lean into the E round when Jamie really wanted to scale up his funding and the final check was still > 420% IRR! Of course the media doesn’t do nuance well so this is an emotional topic.
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