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Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

Both Sides of the Table

Or if you’re a VC raising from LPs you have to list all of your deals, your investment value, your carrying value, your multiples, your IRRs, TVPIs, DPIs, etc along with net cashflows plus your previous LPAs. I often send the introduction email and then a second email to the reference to say, “This reference is really important to me.

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VC investors: Don’t be greedy even if you can.

Berkonomics

Email readers, continue here…] Take a situation where the VC investors finally see the chance of a return after ten years, with participating preferred and fifty percent of the ownership after several rounds. Here’s an example that will make your heart skip a beat. Don’t be greedy even if you can.

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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 Signup for email updates.

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Valuing Startup Employee Options

David Teten

It’s very powerful to have a model that you can email to everyone in the firm, because then everyone sees clearly that you’re communicating the exact same message to the whole team (including outside consultants and the advisory board, if any). Download the Startup Options Valuation model here.

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Pioneering Women in Venture Capital: Kathryn Gould

Steve Blank

I sent her an email saying, “When you’re gone everything you learned goes with you. I was on the way to my lifetime IRR of 90%. “The last thing I want is a bunch of people bugging me while I’m growing my grapes, flying, painting, playing music, and generally goofing off.” She still demurred so I gave it one last shot.

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Angels and VCs: Don’t be greedy even if you can.

Berkonomics

Email readers, continue here…] It is in this combination of possible methods of amassing a return that greed can become a significant factor, so much so that the courts are sometimes stepping in to void some of the most onerous terms of investment agreements when challenged by those locked out of payment in a sale.

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Zayo Group – One of Boulder’s Amazing Startup Stories

Feld Thoughts

” was the title of an email sent to me by Brad, after he had heard from one of his CEOs that Zayo is constructing fiber in Boulder. Our equity IRR has averaged around 50% since inception. It’s great – and follows. Dan – we are lucky to have you – and Zayo – in Boulder. “If true, how can I help?”,

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