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Why Companies are Not Startups

Steve Blank

The Enterprise: Business Model Execution We know that a startup is a temporary organization designed to search for a repeatable and scalable business model. The corollary for an enterprise is: A company is a permanent organization designed to execute a repeatable and scalable business model.

IRR 335
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

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. Pre or post-revenue.

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Fund Raising is a Means Not an End

Steve Blank

When you take money from investors their business model becomes yours. Sigh… What I should have been hearing is the search for the business model, specifically the progress on product/market fit, but I hear the fund raising story first at least 90% of the time. When I asked, “What are you working on?” What’s a Startup?

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Fund Raising is a Means Not an End

Steve Blank

When you take money from investors their business model becomes yours. Sigh… What I should have been hearing is the search for the business model, specifically the progress on product/market fit, but I hear the fund raising story first at least 90% of the time. When I asked, “What are you working on?” What’s a Startup?

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ESG in Venture Capital: Interview with Blue Future Partners (VC Fund of Funds)

David Teten

Clients typically use it to create and strengthen local community initiatives: bake sales, barbeques, political organizing, etc. . 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. I listed some examples above.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

It also assumes the entire value of the investment is captured for investors at a sale of the company in the time specified in the term-sheet. If you look at the spreadsheet, you will see that the “Required Rate of Return” is expressed as an IRR.   Internal Rates of Return naturally compound, so a 50% IRR is 7.59

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ProfessorVC: Bootstrapping 101

Professor VC

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. The three founders shared a vision, built the exercise machines in the garage, and knocked on doors at health clubs, attended trade shows, and worked the phone to get initial sales.