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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

His work on VC and small communities can be found at greatercolorado.vc/blog. 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. Lower level of community familiarity. 20-30% is a common target IRR for investors.

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VC Fund Returns Are More Skewed Than You Think

VC Adventure

Ian Hathaway, who recently co-authored the second edition of Startup Communities with my partner, Brad, sent me the chart below which highlights how that translates to returns in venture capital as an asset class. Taking the most aggressive end of these numbers would still only have this one company returning 70% of the fund’s capital.

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How and Why To Be an Angel Investor

David Teten

They understand the difficulties of building lasting companies and they draw immense satisfaction from being able to share their hard-learned lessons and give back to the community. Average Angel Returns Over Time. Time Period. Total Investments. Exited Investments. 1994 – present. Band of Angels Website FAQ.

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VC investors: Don’t be greedy even if you can.

Berkonomics

You will not be moving your IRR needle enough by grabbing a few extra dollars in a marginal sale, but you will incur the wrath of a number of stakeholders who would be more than willing to spread the word far and wide about your greedy ways. And that reputation will last for a long time in the entrepreneurial community.

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Zayo Group – One of Boulder’s Amazing Startup Stories

Feld Thoughts

I’m intensely proud of both the amazing startup community in Boulder as well as the many significant companies that have been – and are being – created in the little town of 100,000 people I call home. Boulder is an incredible entrepreneurial community, and I enjoy being immersed in it. “How can Brad help?”,

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Angels and VCs: Don’t be greedy even if you can.

Berkonomics

You will not be moving your IRR needle enough by grabbing a few extra dollars in a marginal sale, but you will incur the wrath of a number of stakeholders who would be more than willing to spread the word far and wide about your greedy ways. And that reputation will last for a long time in the entrepreneurial community.

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Paul Graham and The World Out There

This is going to be BIG.

My total valuation multiple across that span is nearly 4x and the return rate is up over 110% IRR. You could see that conversation happening: "Hey, let''s reach out to the community. That''s 25%. a far higher rate than YC has appeared to have done since then. It was exactly how you''d imagine a venture firm to throw a party.