article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

In all these cases, capital is provided to fuel forecasted growth without creating a commitment to a particular vision for future funding rounds, exit goals, and associated blitzscaling. Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. 20-30% is a common target IRR for investors.

article thumbnail

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

If you look at the spreadsheet, you will see that the “Required Rate of Return” is expressed as an IRR.   Internal Rates of Return naturally compound, so a 50% IRR is 7.59   (If you plug in an IRR of 58.5%   Internal Rates of Return naturally compound, so a 50% IRR is 7.59 times at 5 years and 11.39

article thumbnail

Benchmarking Performance: Your Options, Dos, Don'ts and To-Die-Fors!

Occam's Razor

If you want to learn about how to do simple forecasting and trend analysis, please see the official forecast function in Excel post on the Microsoft website, and this handy tutorial on trend lines and forecasting in excel. And you also have, perhaps more useful, the industry wide acquisition strategy distribution.

Analytics 133