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What Does the Post Crash VC Market Look Like?

Both Sides of the Table

The market was down considerably with public valuations down 53–79% across the four sectors we were reviewing (it is since down even further). ==> Aside, we also have a NEW LA-based partner I’m thrilled to announce: Nick Kim. First in late-stage tech companies and then it will filter back to Growth and then A and ultimately Seed Rounds.

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How is the VC Asset Class Doing?

View from Seed

If you aren’t familiar with these metrics, I recommend reading the original post to get a sense of the numbers that I’ll be reviewing here. The top quartile has distributed 2.03x (vs. 1.68) and the median fund now has distributed 1.27X (vs. Based on that metric, the top quartile fund has now distributed 2.03X after 12 years.

LP 256
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10 Reflections After 10 Years of NextView

View from Seed

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. at exit due to dilution. So it’s like this same fund actually invested $2.5M

IRR 205
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10 Reflections After 10 Years of NextView

View from Seed

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. at exit due to dilution. So it’s like this same fund actually invested $2.5M

IRR 156
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10 Reflections After 10 Years of NextView

View from Seed

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. at exit due to dilution. So it’s like this same fund actually invested $2.5M

IRR 136
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Our categorization is not a technical one. Additionally, Flexible VC can accommodate all types of companies, not just asset-lite, tech-enabled companies.”. Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. Technology-centric businesses. Technology-centric businesses.

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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