article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

John Berger, Director Operations & Impact Solutions, Toniic , observed that this has clear investor benefits: “ The grace period became a feature because it benefits investors in regions like the US where there can be tax differences between short and long term gains. That said, nothing is cost-free. Transaction costs.

article thumbnail

How Covid-19 Has Impacted VC Portfolios

View from Seed

Companies that are largely in R&D phase can operate business as usual, assuming there is capital to fund the company for 18-24 more months. 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. Reshuffling the deck.

Portfolio 215
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

ESADE Business School Commencement Speech

Steve Blank

In fact, it was only 7 years ago that Apple shipped its first iPhone and Google introduced its Android operating system. Unfortunately as we’ve learned from recent experience, using Return on Net Assets and IRR as proxies for efficiency and execution won’t save a company when their industry encounters creative disruption.

article thumbnail

Why Companies are Not Startups

Steve Blank

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. For most companies it feels like innovation can only happen by exception and heroic efforts, not by design.

IRR 335
article thumbnail

5 Ways Today’s Market Allows Startups To Scale Faster

Startup Professionals Musings

Today as companies use tools to collect massive amounts of data on desired consumers, brands are able to increasingly market to very specific groups of people, at less cost. Brands can fund operating losses in order to scale faster and acquire market share. The cost of time is increasing, and less time increases your odds of success.

IRR 143
article thumbnail

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

David Teten

In its first full year of operation, VCAP attracted 159 applicants. Most of Africa runs on a cash economy, making it much harder to Africans to access credit, low-cost financial transfers, and other basic tools of a modern economy. . Traditional KPIs are, in descending order of importance: IRR (and secondarily Multiple).

article thumbnail

Intel Disrupted: Why large companies find it difficult to innovate, and what they can do about it

Steve Blank

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. In contrast, startups operate with speed and urgency, making decisions with incomplete information. The result, Intel just laid off 12,000 people , 11% of their company.