Remove Early Stage Remove Finance Remove Later Stage Remove Metrics
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IRR is a vanity metric

VC Adventure

I’m observing that IRR is a metric that is becoming an increasing focus in venture, replacing fund return multiple as the key metric of success. I understand the draw of IRR, and – as a fund draws to a close – there’s no question it’s an important metric. This is a mistake. Venture is a long game.

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8 Tips To Get the Most Out of Your Investors and Board

Both Sides of the Table

Growth like this, this early in a company’s lifecycle rarely happens. In this period (less than 2 years) he has brought on incredibly talented senior execs is sales, marketing, product management, client services, finance, vp engineering and more. In his spare time he raised nearly $30 million. Ask for short conference calls.

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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

The earlier you invest the higher the chances the company won’t work out and thus you pay a lower price than later-stage investors. That’s the deal you get when you’re raising in a good market for startup financing. Another firm we saw tried to raise $15 million at a $60 million pre-money with similar metrics.

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How I Invest

Both Sides of the Table

During the Q&A I was asked about how I make investment decisions in early-stage businesses. I was asked again in an LP meeting later in the week and then again at a founder breakfast gathering we hosted yesterday. I know that sounds trite but it’s the best way I can describe my early-stage investments.

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Is Your VC Founder Friendly?

Steve Blank

Certain VC’s like the new class of Super-Angels and small VC funds specialize in the early stage of a startup where you are searching for a business model. And some larger funds that specialize in later stage deals may have a partner or two who likes to invest at this stage. Lean Startups ?

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The Seeds Have Changed: An Epilogue to The New Venture Landscape

K9 Ventures

Together this means that Seed stage companies need to run longer and at a higher expense structure, meaning they need to raise a lot more capital. A re-jiggering of deal stages and sizes had begun in 2013. I still wanted K9 to be the first institutional money in a company and work with “frighteningly early-stage” companies.

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Is Austin Headed for a Seed Round Draught?

Austin Startup

A tendency towards more money but less deals could be debilitating for early-stage companies. The tens-of-millions-of-dollars rounds aren’t going to the early-stage startups. So while the number of dollars pouring into Austin may be increasing, that metric is only favorable to businesses that warrant those sized-rounds.

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