David Teten
JANUARY 19, 2021
Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.” That said, nothing is cost-free. More complex cost of capital calculation. Flexible VC can allow Impact VCs to thread this needle.”.
View from Seed
JULY 15, 2020
Mid-stage portfolios can be more acutely impacted if many companies have fat cost structures and were investing heavily in growth that is not materializing. Many of these companies are probably valued at their last financing round, which probably occurred in a very frothy funding environment. Reshuffling the deck.
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Steve Blank
MARCH 31, 2014
Cheered on by finance professors, Wall Street analysts, investors and hedge funds, companies have learned how to make metrics like Internal Rate of Return look great by one; outsourcing everything, two, getting assets off their balance sheet, and three only investing in things that pay off fast.
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. Finance The goals for public companies are driven primarily by financial Key Performance Indicators (KPI’s).
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. Second, the leaders of these companies tended to be those who excelled at finance, supply chain or production. They knew how to execute the current business model.
Tim Keane
JANUARY 12, 2010
For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing. Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors. (If you plug in an IRR of 58.5%
Startup Professionals Musings
APRIL 3, 2012
Angels are typically high net-worth individuals, investing their own money, interested more in early or “seed” financing of amounts starting as low as $25K. Another rule of thumb is a target of 50% IRR (a discounted cashflow calculation). The basics are simple. Expected return rate. Marty Zwilling.
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