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Why Companies are Not Startups

Steve Blank

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. KPI’s and processes are the root cause of corporations’ inability to be agile and responsive innovators.

IRR 335
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ESADE Business School Commencement Speech

Steve Blank

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. Today billions of dollars that companies could have invested in innovation are sitting in the hands of private equity funds.

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Intel Disrupted: Why large companies find it difficult to innovate, and what they can do about it

Steve Blank

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. Their size lets them adopt flatter and more agile organizational structures while providing incentives that reward risk-taking and collaboration.

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A Closer Look At The Quality Of Angel Returns Data

David Teten

The good news for Techcrunch readers: Every major study conducted to date has placed angel investors’ IRR between 18 and 38 percent, as summarized by my Partner John Frankel and Professor Robert Wiltbank in prior Techcrunch articles. Every major angel study conducted to date has shown high IRR.

IRR 114
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How to Impress Angel Investors and Make It into “Startup Heaven”

Up and Running

For example, one of the angels I pitched to cared deeply about our competitive landscape, whereas another wasn’t too concerned about the competitive landscape, he was more interested in our financial assumptions and my team’s ability to implement in an agile fashion. Angels vs. venture capitalists.

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The VC Shakeout: Are We There Yet?

Agile VC

typically, which in most cases would to >20% IRR. So at a fund level (e.g. a VC fund’s entire portfolio in aggregate, net of management fees and carried interest) a good return from an LP’s perspective would be 2.5-3.0x

LP 154