View from Seed
AUGUST 17, 2021
One industry specific example is the strange fascination among some LPs and GPs around term IRR. Even though everyone knows that VC funds take 10+ years to come to fruition, one often can’t help but benchmark themselves based on IRR in the early days. But then again, this is what skeptics have been predicting for 10+ years.
View from Seed
AUGUST 17, 2021
One industry specific example is the strange fascination among some LPs and GPs around term IRR. Even though everyone knows that VC funds take 10+ years to come to fruition, one often can’t help but benchmark themselves based on IRR in the early days. But then again, this is what skeptics have been predicting for 10+ years.
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View from Seed
AUGUST 17, 2021
One industry specific example is the strange fascination among some LPs and GPs around term IRR. Even though everyone knows that VC funds take 10+ years to come to fruition, one often can’t help but benchmark themselves based on IRR in the early days. But then again, this is what skeptics have been predicting for 10+ years.
Steve Blank
MARCH 31, 2014
In spite of this, private equity funds have used the rallying cry of efficiency to hijack corporate strategy and loot the profits that historically would have been reinvested into research and development and new products. The first will be commodity businesses that are valued for their ability to execute their current business model.
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. Every large company, whether it can articulate it or not, is executing a proven business model (s).
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.
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