Up and Running

MARCH 6, 2019

Real businesses make profits like 7 percent, 9 percent, occasionally even low double-digit profits (stated as a percentage of sales). Rarely, some new innovative businesses will get to 20 percent profits to sales. But don’t quote me a damned IRR. Instead of that, validate sales by bottoms-up assumptions.

Net Present Value 87

Net Present Value Forecast IRR Oregon 87

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. Angel investors are not impressed by projections of 30-40-50% or more profits on sales.

Angel Investor 60

Angel Investor IRR Software Review Startup 60

Up and Running

AUGUST 19, 2014

Below you’ll hear tips from angels who come from all walks of life—from an angel by day, comedian by night, to a sales recruiter and trainer angel. They should also show that they have measured the cost of reaching that market by comparing a customer’s lifetime value (LTV) to the customer’s acquisition cost (CAC).”.

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

Steve Blank

JUNE 11, 2013

These are great, but they are not repeatable by a sales organization. The test is: If you add one more sales person or spend more marketing dollars, does your sales revenue go up by more than your expenses? • Business model : A business model answers the basic questions about your entire business: Who are the customers?

Venture Capital 333

Venture Capital IRR Liquidity Event Business Model 333

Steve Blank

JUNE 11, 2013

These are great, but they are not repeatable by a sales organization. The test is: If you add one more sales person or spend more marketing dollars, does your sales revenue go up by more than your expenses? • Business model : A business model answers the basic questions about your entire business: Who are the customers?

Venture Capital 225

Venture Capital IRR Liquidity Event Business Model 225

Up and Running

MAY 2, 2012

But don’t quote me a damned IRR. I’ll judge your projections for realism and credibility, but that’s sales, costs, expenses, cash flow, and other basic numbers. Validate sales by bottoms-up assumptions. . Not discounted cash flow. . Big market “facts.” Know what you don’t know.

Net Present Value 142

Net Present Value IRR Texas Global 142

The Next Web

DECEMBER 16, 2012

Once you decide to get your site in shape for a sale , it’s important to value it properly. Then we’ll look at the different types of buyers in the market, and what that can mean for the final sale price of a site. The asset approach to valuation focuses on the market value of what’s included in the sale itself.

Valuation 128

Valuation NPV Net Present Value IRR 128

abovethecrowd.com

APRIL 20, 2016

In Silicon Valley boardrooms, where “growth at all costs” had been the mantra for many years, people began to imagine a world where the cost of capital could rise dramatically, and profits could come back in vogue. Do you feel the need to raise more capital quickly before the prices erode further and bring down your IRR?

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

David Teten

NOVEMBER 23, 2020

I highlight endogenous social impact because many of my portfolio companies might give money to charity or provide low-cost pricing to nonprofits, but that’s not what I think of as an impact company; they’re tacking on social impact on top of their core business, whatever that is. . Starship was launched by the co-founders of Skype.

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60