David Teten
JANUARY 19, 2021
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. Typical business stage. An already proven business model and its already valuable assets. Typical business model. Venture Debt.
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. These resulting business models made them look incredibly profitable. They knew how to execute the current business model. Lessons Learned.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Professor VC
MARCH 10, 2009
His latest venture, Bharosa, was sold to Oracle for a 6X multiple in 3 years to his angel investors, a sweet close to triple digit IRR. His goal in building the company was to spend 3 years building value and find a good home for the engineers and product. I am an active angel investor and on the board of Sand Hill Angels.
Occam's Razor
OCTOBER 14, 2014
This recommendation also valuable for companies that have very unique business models, or face other unusual circumstances (geographic, size, amount of innovation, and many others). Leaders (company is leaving China, our IPO is next week, 1,800 new stores are being opened in 180 days, our new IRR is 8%). See Page 269. :).
David Teten
NOVEMBER 23, 2020
That said, we think we will have a sustainable positive impact in three ways: Invest in companies with direct social impact as a result of their core business activities. Invest in business models that otherwise could not access VC. Less than 1% of all new businesses take investment from VCs. I listed some examples above.
Expert insights. Personalized for you.
78 
Let's personalize your content