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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. Kai taught me that the key metric to whether a sales process is going well is “engagement.”

Cap Table 336
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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

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

Occam's Razor

Any big changes in your marketing/customer acquisition strategy over the last time period (more money doing Search, less money in Email, elimination Facebook as it does not work, etc., Leaders (company is leaving China, our IPO is next week, 1,800 new stores are being opened in 180 days, our new IRR is 8%). And other such things.

Analytics 133
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On the Road to Recap:

abovethecrowd.com

Anything that hints of a down round brings questions about the success metrics that have already been “booked.” Do you feel the need to raise more capital quickly before the prices erode further and bring down your IRR? Furthermore, an abundance of such write-downs could impede their ability to raise their next fund.

IPO 40