Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. I often send the introduction email and then a second email to the reference to say, “This reference is really important to me. I’d be grateful if you could prioritize it.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Tim Keane

JANUARY 12, 2010

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

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

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.

Employee 155

Employee IRR Startup Mexico 155

Feld Thoughts

JULY 31, 2013

” 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. Today, Zayo has eclipsed $1.1Bin revenue and $600M in EBITDA, leading to an estimated Enterprise Value in the vicinity of $6B. Our equity IRR has averaged around 50% since inception.

Bandwidth 147

Bandwidth Colorado Startup IRR 147

Up and Running

AUGUST 19, 2014

Angels get a ton of emails and the way they stand out is through relentless follow-ups (“Oh here’s this Pete guy again” vs. “who are you again?”). Entrepreneurs impress me when they demonstrate a proven revenue stream before asking for capital. I must believe that they believe in their own product.

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

abovethecrowd.com

APRIL 20, 2016

A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. Do you feel the need to raise more capital quickly before the prices erode further and bring down your IRR? The same thing happened to many Internet stocks. LIMITED PARTNERS (LPS).

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

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. For what I’ve seen/heard the tops VC funds typically have an IRR of over 20%. What follows is my analysis of why this is the case from three different points of view. Background.

IRR 48

IRR Venture Capital LP Early Stage 48