.Net Cost Finance IRR 
Steve Blank
MARCH 31, 2014
Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. Unfortunately as we’ve learned from recent experience, using Return on Net Assets and IRR as proxies for efficiency and execution won’t save a company when their industry encounters creative disruption.
David Teten
NOVEMBER 23, 2020
I highlight endogenous social impact because many of my portfolio companies might give money to charity or provide low-cost pricing to nonprofits, but that’s not what I think of as an impact company; they’re tacking on social impact on top of their core business, whatever that is. . Net Promoter Score from Founders we back.
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Up and Running
DECEMBER 22, 2015
My personal favorite in the “pure nonsense category” is the IRR, the Internal Rate of Return , something that was interesting for about one hour as part of the MBA curriculum, but which has no relevance in the real world. Read more of my articles related to this topic: You Can Take That IRR and Shove It.
Steve Blank
MARCH 4, 2014
These groups are adapting or adopting the practices of startups and accelerators – disruption and innovation rather than direct competition, customer development versus more product features, agility and speed versus lowest cost. Finance The goals for public companies are driven primarily by financial Key Performance Indicators (KPI’s).
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. Second, the leaders of these companies tended to be those who excelled at finance, supply chain or production. They knew how to execute the current business model.
Startup Professionals Musings
APRIL 3, 2012
Angels are typically high net-worth individuals, investing their own money, interested more in early or “seed” financing of amounts starting as low as $25K. Another rule of thumb is a target of 50% IRR (a discounted cashflow calculation). The basics are simple. Expected return rate. Marty Zwilling.
Startup Professionals Musings
NOVEMBER 11, 2010
Angels are typically high net-worth individuals, investing their own money, interested more in early or “seed” financing of amounts starting as low as $25K. Another rule of thumb is a target of 50% IRR (a discounted cashflow calculation). The basics are simple. Expected return rate. Marty Zwilling.
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