View from Seed

JULY 15, 2020

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. This may not hurt the ultimate exit value of these companies, but the passage of time will hurt the fund’s ultimate IRR. Unevenly distributed, but broadly optimistic.

Portfolio 215

Portfolio IRR Dilution Distribution 215

David Teten

JANUARY 19, 2021

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. 20-30% is a common target IRR for investors. Early liquidity.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Steve Blank

MARCH 31, 2014

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.

Private Equity 326

Private Equity Metrics China Intellectual Property 326

Both Sides of the Table

MAY 25, 2013

As you can see from the chart their data suggests there are about $25 billion of VC distributions per year in the US. The better way to think about VC returns is, do the firms consistently beat alternative asset clases on an IRR basis to adjust for the increased risk and lack of liquidity? The top 2% do not drive 98% of the returns.

LP 374

LP Later Stage IRR Term Sheet 374

Andrew Payne

MARCH 25, 2009

For too long, venture’s been over-funded and over-staffed with homogeneity: the same kinds of partners, operating with the same fund model, looking at the same investments, in the same markets. Partnerships getting hit the hardest: those without some recent distributions (some are rumored to have nothing in the past 7-9 years!),

Venture Capital 40

Venture Capital IRR Capital Call Distribution 40

abovethecrowd.com

APRIL 20, 2016

As discussed above, these terms can cleverly fool the inexperienced operator, because they are able to “meet the ask” with respect to cover valuation, and the accepting founder does not realize the carnage that will come down the road. 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