Steve Blank

MARCH 31, 2014

Fifty years later another Harvard professor, Clayton Christensen, developed his theory of disruptive innovation, which actually described how creative destruction worked. The Amazon Kindle played on Amazon’s strengths as a distributor of content but required developing expertise in electronics and manufacturing.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

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. Product management tools like Stage-Gate ® emerged to systematically manage Waterfall product development.

IRR 335

IRR Startup Business Model Agile 335

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. Filed under: Corporate Innovation , Customer Development. These metrics make it difficult for a company that wants to invest in long-term innovation.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

David Teten

NOVEMBER 23, 2020

– Owletcare develops and manufactures a wearable baby monitor “smart sock” that monitors oxygen levels and heart rate and alerts parents in case of an emergency. – Forte has developed an innovative structure to finance vocational reskilling at no cost to individuals or governments. Firm revenues.

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60

Steve Blank

JUNE 11, 2013

In normal times, when there aren’t dollars to undo mistakes, you use Customer Development to find product-market fit. What is an IRR? In times of unlimited cash (internet bubbles, frothy venture climates) you can fix your mistakes by burning more dollars. How do the fund and the partners make money? How long is a fund’s life?

Venture Capital 333

Venture Capital IRR Liquidity Event Business Model 333

Both Sides of the Table

OCTOBER 17, 2019

An example was that while we were in the seed round at Ring and followed in the A, B, C and D … we were also able to lean into the E round when Jamie really wanted to scale up his funding and the final check was still > 420% IRR!

IP 223

IP Intellectual Property IRR Cofounder 223

Steve Blank

JUNE 11, 2013

In normal times, when there aren’t dollars to undo mistakes, you use Customer Development to find product-market fit. What is an IRR? In times of unlimited cash (internet bubbles, frothy venture climates) you can fix your mistakes by burning more dollars. How do the fund and the partners make money? How long is a fund’s life?

Venture Capital 225

Venture Capital IRR Liquidity Event Business Model 225

David Teten

APRIL 8, 2013

Based on a range of sources, we believe that most funds with well-developed Portfolio Operator models have top-quartile returns (typically above 20% IRR in the relevant time periods).

Private Equity 114

Private Equity Hungary IRR Venture Capital 114

David Teten

NOVEMBER 17, 2011

He wrote the following guest blog post, and worked closely with me to develop this financial model. By definition, IRR is calculated using amount invested, amount received at some point in the future, and time passed between the two cash flows.

Employee 155

Employee IRR Startup Mexico 155

Startup Professionals Musings

MAY 9, 2011

But that one fell victim to rapidly developing technologies, the recession, and the collapse of the consumer electronics market, and is unlikely to return a significant profit. David: The exponential development of technology has begun to cause deep and fundamental changes to the world of early stage finance.

New York 221

New York Accredited Investor Advisory Board IRR 221

VC Cafe

JULY 2, 2012

Lots of returns are being made these days, but the latest CalPers report shows dissapointing returns by Israeli VC firms , with an IRR of 3.5%-3.8% has acquired Israeli face recognition technology developer Face.com for $100 million. a developer of real-time location systems for the healthcare and industrial market.

Latvia 109

Latvia Lithuania Russia 109

K9 Ventures

DECEMBER 14, 2008

Lets assume that Shylock Ventures is capable of producing a 20% IRR on a $100M fund. If Shylock Ventures were now to raise a $500M fund or a $1B fund, it probably will not be able to maintain its IRR. Can the same firm that is doing early stage investing develop a competency in doing late stage investing overnight?

IRR 99

IRR Bandwidth Venture Capital Early Stage 99

Feld Thoughts

JULY 31, 2013

It took me several more years to understand Brad, and during this time I developed a deep appreciation of his passion for entrepreneurism. Third, we developed a thesis around “Bandwidth Infrastructure”, a term we coined. Our equity IRR has averaged around 50% since inception. “How can Brad help?

Bandwidth 147

Bandwidth Colorado Startup IRR 147

Steve Blank

AUGUST 5, 2014

I developed a deadly accurate intuition on people, an unbeatable set of contacts, and loved working for myself in my little firm. I was on the way to my lifetime IRR of 90%. And who would have guessed—perfect preparation for the VC business. I loved the business, and I was good at it. But then, trouble.

Venture Capital 333

Venture Capital Silicon Valley Chicago Cofounder 333

Professor VC

MARCH 10, 2009

His latest venture, Bharosa, was sold to Oracle for a 6X multiple in 3 years to his angel investors, a sweet close to triple digit IRR. I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases.

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Software Review 28

The Next Web

DECEMBER 16, 2012

Income-based valuations consider aspects like CAPM (capital asset pricing model), IRR (internal rate of return), NPV (net present value), WACC (weighted average cost of capital), NCF (net cash flow), and GAAP (generally accepted accounting principles). Because it’s usually pretty hard to find developers to maintain outdated code.

Valuation 128

Valuation NPV Net Present Value IRR 128

K9 Ventures

NOVEMBER 30, 2008

The birth of modern-day venture capital (not considering the European monarchs financing explorations and projects as venture capital) can be traced back to American Research and Development, which was started by Georges Doriot. For what I’ve seen/heard the tops VC funds typically have an IRR of over 20%.

IRR 48

IRR Venture Capital LP Early Stage 48

Feld Thoughts

AUGUST 1, 2018

We are very long-term investors, focusing on net cash on cash returns, rather than short-term or intermediate IRRs. Our goal is to have significant ownership in companies we are investors in (often over 30%). While we have an early entry point from our historical early-stage investing, we don’t have to be the first investor in a company.

Syndicate 17

Syndicate Syndication IRR Canada 17

Professor VC

JANUARY 17, 2008

If my math is correct, this is approximately a 31% IRR, which has to beat individual angel investments on aggregate and venture capital returns over the period of the study (1990-2007). I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28