Steve Blank

MARCH 4, 2014

A consequence of using these corporate finance metrics like RONA and IRR is that it ‘s a lot easier to get these numbers to look great by 1) outsourcing everything, 2) getting assets off the balance sheet and 3) only investing in things that pay off fast.

IRR 335

IRR Startup Business Model Agile 335

Up and Running

JUNE 17, 2013

Then I got the same thing again this year, more than in the past, in the business plan contests I judge. I’ll look at your plan instead and figure out what I think you can do. And Internal Rate of Return (IRR)? Finance angel investment IRR ROI venture capital' I trust my judgment on that.

IRR 71

IRR Flash Angel Investor Venture Capital 71

SoCal CTO

MAY 19, 2010

In his recent post, Top 10 Ways to Win a Business Plan Competition , he says: #4 I wanted to push this further down the list, but I just bristle at this: the revenue forecast. My 4 plans get increasingly more incredible, ranging from $50M, $60M, $70M to $161M in year 5! These are so detached from reality.

Hockey Stick 205

Hockey Stick NPV IRR Valuation 205

Tim Keane

JANUARY 12, 2010

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   (If you plug in an IRR of 58.5%   Internal Rates of Return naturally compound, so a 50% IRR is 7.59 times at 5 years and 11.39

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Up and Running

MARCH 6, 2019

As I write this in early 2019, I’m thinking back on more than 20 years of hearing business pitches as a judge of business plan competitions and as an angel investor. Next month I’ll have another round of it, judging both the University of Oregon New Venture Competition and the Rice Business Plan Competition.

Net Present Value 87

Net Present Value Forecast IRR Oregon 87

Startup Professionals Musings

MARCH 12, 2023

If your targeted business plan opportunity is not at least a billion dollars, most VCs won’t even be interested. Both angel and VC investors are looking for solutions that scale easily (product versus service businesses), and both expect revenue growth that can reach the $20M mark by year five.

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

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.

Angel Investor 60

Angel Investor IRR Software Review Startup 60