Both Sides of the Table

MAY 19, 2018

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.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

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. Photo credit: dierken.

Employee 155

Employee IRR Startup Mexico 155

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? The unfortunate reality is the most partners at VCs firms see hundres of deals every year and invest in 1-2 of them. Many don’t return my emails on time.

LP 374

LP Later Stage IRR Term Sheet 374

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%. My two best partners went off to start Benchmark Capital, very successful to this day, so my firm was going to blow up. She still demurred so I gave it one last shot. This really is bigger than you.

Venture Capital 333

Venture Capital Silicon Valley Chicago Cofounder 333

Professor VC

MARCH 10, 2009

His latest venture, Bharosa, was sold to Oracle for a 6X multiple in 3 years to his angel investors, a sweet close to triple digit IRR. Email This BlogThis! Jon Fisher purposely avoided raising venture capital in his ventures. In this case, a win-win for everyone, except perhaps the VCs who didnt get the opportunity to participate.

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Software Review 28

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. Assume Shylock Ventures has 10 partners who are going to invest the $500M fund over 5 years. Background.

IRR 48

IRR Venture Capital LP Early Stage 48

Professor VC

JANUARY 17, 2008

A partner from the law firm (sponsor, covers the drinks and food) tosses out some softball questions to the panelists, the audience chimes in with Q&A and finally, culminates with the meet and greet where the panelists are flooded with business cards and pitches on the next great thing, which is often very similar to the last great thing.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28