Steve Blank

AUGUST 5, 2014

Kathryn has been the founding VP of Marketing of Oracle , a successful recruiter, a world class Venture Capitalist, a co-founder of a Venture Capital firm, a great board member, one of my mentors and most importantly a wonderful friend. Eventually I left Oracle, wanting to do another startup.

Venture Capital 334

Venture Capital Silicon Valley Chicago Cofounder 334

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. Of the Inc. 5000 companies, only 6.5%

Cofounder 78

Cofounder Technical Review Equity Dividend 78

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

VC Adventure

OCTOBER 5, 2020

Some of the most popular posts I’ve written over the past couple of years were the two that focused on just how rare outsized returns for an individual deal are in venture capital. Taking the most aggressive end of these numbers would still only have this one company returning 70% of the fund’s capital.

IRR 174

IRR Venture Capital Community Partner 174

Steve Blank

MARCH 31, 2014

Just look at the disruptive challenges that businesses face today– globalization, China as a manufacturer, China as a consumer, the Internet, and a steady stream of new startups. Perhaps that’s because where established companies might see risks or threats, startups see opportunity. Building Innovation Internally is Hard.

Private Equity 326

Private Equity Metrics China Intellectual Property 326

Startup Professionals Musings

FEBRUARY 5, 2018

Of course, in a world which spawns over a half million startups every month, these accomplishments are very rare, but they are happening like never before. Whether our business is a startup or a multi-national brand, through platforms like Amazon, giant players have no special advantage.

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. Time is the enemy of IRR.

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

Both Sides of the Table

MAY 24, 2021

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. 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. It literally drove FOMO.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

David Teten

NOVEMBER 17, 2011

This is the third of three blog posts on financial modeling for startups. The first was on best practices in building financial models , and the second was a template financial model for a startup. Download the Startup Options Valuation model here. Valuing startups is a far fuzzier process. Participa.me

Employee 155

Employee IRR Startup Mexico 155

David Teten

APRIL 8, 2013

Based on a range of sources, we believe that most funds with well-developed Portfolio Operator models have top-quartile returns (typically above 20% IRR in the relevant time periods). What are some other ways that VCs can help their startups? Analytics and Data Contributed Articles Portfolio Operations Private Equity Venture Capital'

Private Equity 114

Private Equity Hungary IRR Venture Capital 114

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success.   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

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.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Both Sides of the Table

OCTOBER 17, 2019

I had just left Salesforce.com where I was VP, Products, after they had acquired my second startup. 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.

IP 223

IP Intellectual Property IRR Cofounder 223

This is going to be BIG.

DECEMBER 28, 2013

However, in this moment, I think one''s career in venture capital depends on changing your perspective. If you are a venture capital investor and you''re not preparing yourself to succeed in a more diverse ecosystem of entrepreneurs, you''re just going to get left behind. Venture Capital & Technology'

Venture Capital 164

Venture Capital Cofounder IRR Dilution 164

The Equity Kicker

OCTOBER 25, 2012

One of the world’s larger investors in venture capital recently shared data with us about the multiples they have made on over 5,000 companies they had stakes in via their LP investments in US VC funds. Disciplined VCs work hard to make sure that they do find a home so they can get the capital back to their investors.

LP 150

LP IRR Venture Capital Naming 150

Hippoland

NOVEMBER 13, 2016

The #1 problem with the venture capital game, in general, is that *actual success* is measured over decades not years. It takes a long time to see the results of a startup that does well. A common intermediary milestone for most investors is IRR (internal rate of return) of the fund. But I should have thought about it.

IRR 48

IRR Valuation Portfolio Due Diligence 48

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.

Omaha 91

Omaha Accredited Investor IRR Silicon Valley 91

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. RBI capital is normally treated as debt. How to Raise Capital for your Startup.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Startup Professionals Musings

MARCH 12, 2023

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. They fail to realize that the considerations are quite different for each, which can make or break their investment efforts, and ultimately their startup.

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

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. Illiquidity is a huge elephant in the room when it comes to startup and emerging company investing. He asked, “ Is this practical advice? Improved Liquidity. A massive advantage.

San Diego 72

San Diego Warrant IRR Investment Bankers 72

Up and Running

AUGUST 19, 2014

An angel investor is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. An angel investor is a high net worth individual who invests their own money into startup companies in the hopes of gaining a return on their money. What impresses angels?

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

K9 Ventures

MAY 14, 2011

The companies go through a 3-6 month long startup bootcamp and then typically try to raise angel/seed funding. Angels : Angels are individual investors, who are investing their own capital and doing so on a part-time basis. As fiduciaries, the general partners of the uVC funds have to begin to focus on the dreaded VC I-word : IRR.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

ithacaVC

FEBRUARY 13, 2013

God had to have somebody willing to tweet, blog and yet take care of the portfolio CEOs, run at double speed to prevent cash challenges, ahead of the economic downturns and yet stop on mid-field and race to raise another fund when he sees the first smoke from an exit with a positive IRR. So, God made a VC! So, God made a VC!

Liquidation Preference 55

Liquidation Preference IRR Due Diligence LP 55

Up and Running

DECEMBER 22, 2015

We don’t just reject startups; we explain why. Angel investors are individuals willing to invest their own money to fund new startups. Most of them have made money with startups; they’ve been through the ringer, they’ve succeeded, and they are in a position to share. So if you’re a startup, always focus on listening first.

Angel Investor 60

Angel Investor IRR Software Review Startup 60

Startup Professionals Musings

JUNE 13, 2020

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. They fail to realize that the considerations are quite different for each, which can make or break their investment efforts, and ultimately their startup.

Angel Investor 314

Angel Investor Entrepreneur IRR Valuation 314

Steve Blank

JUNE 11, 2013

———– One of my ex students came out to the ranch to give me an update on his startup. It all starts with understanding what a startup is. What’s a Startup? Just as a reminder, a startup is a temporary organization designed to search for a repeatable and scalable business model. Why small amounts?

Venture Capital 334

Venture Capital IRR Liquidity Event Business Model 334

Startup Professionals Musings

AUGUST 2, 2014

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited Angel investors. They fail to realize that the considerations are quite different for each, which can make or break their investment efforts, and ultimately their startup.

Angel Investor 266

Angel Investor Entrepreneur Venture Capital IRR 266

Steve Blank

JUNE 11, 2013

———– One of my ex students came out to the ranch to give me an update on his startup. It all starts with understanding what a startup is. What’s a Startup? Just as a reminder, a startup is a temporary organization designed to search for a repeatable and scalable business model. Why small amounts?

Venture Capital 226

Venture Capital IRR Liquidity Event Business Model 226

Startup Professionals Musings

JUNE 5, 2016

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited Angel investors. They fail to realize that the considerations are quite different for each, which can make or break their investment efforts, and ultimately their startup.

Angel Investor 120

Angel Investor IRR Valuation Startup 120

Startup Professionals Musings

MAY 9, 2011

Marty: Welcome to Startup Professionals interviews. 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.

New York 221

New York Accredited Investor Advisory Board IRR 221

abovethecrowd.com

APRIL 20, 2016

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.” At the same time, we also started to see an increase in startup failure.

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. The reality is that it wasn’t until the GEC (Global Economic Crisis, Great Recession, Credit Crunch, call it what you will) of late 2008 and early 2009 that the shakeout really began for venture capital.

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

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