Up and Running

MARCH 6, 2019

Editor’s note: Permission to use requested via email 2/28/19]. Real businesses make profits like 7 percent, 9 percent, occasionally even low double-digit profits (stated as a percentage of sales). Rarely, some new innovative businesses will get to 20 percent profits to sales. But don’t quote me a damned IRR.

Net Present Value 87

Net Present Value Forecast IRR Oregon 87

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. For starters you have to realize that fund-raising is a sales process. and then asking to take a brochure home with you.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Berkonomics

JANUARY 6, 2022

First, the marginal exit event: Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation.

Dividend 62

Dividend IRR Preferred Stock Participating Preferred 62

Up and Running

AUGUST 19, 2014

Below you’ll hear tips from angels who come from all walks of life—from an angel by day, comedian by night, to a sales recruiter and trainer angel. 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?”).

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

Tim Keane

JANUARY 12, 2010

It also assumes the entire value of the investment is captured for investors at a sale of the company in the time specified in the term-sheet. 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

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Berkonomics

OCTOBER 1, 2015

Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation.

Dividend 48

Dividend Preferred Stock IRR Participating Preferred 48

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. In the sale to LVLT, we kept a portion of this office. Our equity IRR has averaged around 50% since inception. It’s great – and follows. “Fiber in Downtown Boulder?”

Bandwidth 147

Bandwidth Colorado Startup IRR 147