VC Adventure

MAY 5, 2022

I’m observing that IRR is a metric that is becoming an increasing focus in venture, replacing fund return multiple as the key metric of success. I understand the draw of IRR, and – as a fund draws to a close – there’s no question it’s an important metric. management fee). Venture is a long game.

IRR 116

IRR Metrics Valuation LP 116

Both Sides of the Table

FEBRUARY 20, 2019

As per the chart above, I highly recommend keeping a founder dominated board at the seed stage. Whether the seed investor gets a permanent seat or a temporary seat will largely depend on: The size check they wrote (If it’s a $1.5m If your metric move immediate up-and-to-the-right? But it’s quite rare.

Venture Capital 236

Venture Capital Startup Angel Investor Silicon Valley 236

David Teten

JANUARY 19, 2021

This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. . Flexible VCs have created structures based on other company performance metrics than revenues, such as profits or founder salaries. Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

K9 Ventures

OCTOBER 10, 2017

Where did the term Pre-Seed come from? The first time I used the words “pre-seed” (yes, the initial use was in all lower-case, but then became upper-case over time) was on June 27, 2013, at the K9 Ventures LP Meeting. They talk about how deal sizes and stages were changing even back then. Seed rounds were getting bigger.

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

K9 Ventures

OCTOBER 12, 2015

Not to mention that in later stages, high valuations can almost be fatal for some companies that don’t have the operating metrics to justify those valuations once the market turns. I’ve often said in private that I blame LPs for the cyclical nature of the venture industry. As valuations increase, VC returns go down.

Venture Capital 48

Venture Capital Seed Stage LP Valuation 48