View from Seed
AUGUST 17, 2021
One industry specific example is the strange fascination among some LPs and GPs around term IRR. Even though everyone knows that VC funds take 10+ years to come to fruition, one often can’t help but benchmark themselves based on IRR in the early days. You can’t just start chasing the shiny new thing every moment something new arises.
View from Seed
AUGUST 17, 2021
One industry specific example is the strange fascination among some LPs and GPs around term IRR. Even though everyone knows that VC funds take 10+ years to come to fruition, one often can’t help but benchmark themselves based on IRR in the early days. You can’t just start chasing the shiny new thing every moment something new arises.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
View from Seed
AUGUST 17, 2021
One industry specific example is the strange fascination among some LPs and GPs around term IRR. Even though everyone knows that VC funds take 10+ years to come to fruition, one often can’t help but benchmark themselves based on IRR in the early days. You can’t just start chasing the shiny new thing every moment something new arises.
This is going to be BIG.
JULY 30, 2015
Where I don't actually think that's the case is in growth rounds, which seem hyper competitive right now--and where the ability to differentiate yourself as an investor is limited. If you're following on in the A round, then you shed a full 500 basis points on your IRR. Time is the enemy of IRR. 25% of the A's sell for $20mm.
Startup Professionals Musings
MARCH 12, 2023
Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. VCs will be looking for a 10X return on their investment in 3 to 5 years, or 30% annual IRR (Internal Rate of Return). How large is the financial return you project?
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. Read more of my articles related to this topic: You Can Take That IRR and Shove It.
Startup Professionals Musings
JUNE 13, 2020
Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. VCs will be looking for a 10X return on their investment in 3 to 5 years, or 30% annual IRR (Internal Rate of Return). How large is the financial return you project?
Expert insights. Personalized for you.
205 
Let's personalize your content