Berkonomics

JANUARY 6, 2022

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.

Dividend 62

Dividend IRR Preferred Stock Participating Preferred 62

David Teten

NOVEMBER 17, 2011

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. Participa.me

Employee 155

Employee IRR Startup Mexico 155

Berkonomics

OCTOBER 1, 2015

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.

Dividend 48

Dividend Preferred Stock IRR Participating Preferred 48

Steve Blank

AUGUST 5, 2014

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%. We brought in all operating guys—all had done startups, all had technical backgrounds. I pointed out that, “Now that you retired, what happens to all the knowledge and experience you’ve acquired?”

Venture Capital 334

Venture Capital Silicon Valley Chicago Cofounder 334

Both Sides of the Table

MAY 25, 2013

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? I’ll admit that I do know one VC firm who’s strategy is not to call their entrepreneurs and not to be involved in operations. ” Fair enough.

LP 374

LP Later Stage IRR Term Sheet 374

K9 Ventures

NOVEMBER 30, 2008

I would welcome a discussion on this topic and invite any interested folks to either leave their comments below or email me directly if they prefer. The General Partners (GPs) are the operating guys. In return for the operational role the GPs play, their firm receives a Management Fee. Background. of the size of the fund.

IRR 48

IRR Venture Capital LP Early Stage 48

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