David Teten
JANUARY 19, 2021
This causes the cost of capital for Flexible VC, often calculated through IRR (similar to an interest rate), can be higher than that of venture debt or traditional RBI. Early-stage: Cofounder with engineering/ product background from top-tier university or major technology company. 20-30% is a common target IRR for investors.
Steve Blank
JUNE 23, 2016
As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency. For the first 75 years of the 20 th century, when capital for new ventures was scarce, the smartest engineering talent went to corporate R&D labs.
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David Teten
NOVEMBER 17, 2011
By definition, IRR is calculated using amount invested, amount received at some point in the future, and time passed between the two cash flows. The good news for us engineers (me, by academic training) that favor science over art in valuation is that there is real data out there to justify the returns that angel investors seek.
This is going to be BIG.
DECEMBER 28, 2013
My total valuation multiple across that span is nearly 4x and the return rate is up over 110% IRR. Of the 20 teams, only half count an engineer as a founder or co-founder. That''s 25%. a far higher rate than YC has appeared to have done since then. All of the companies but one were funded in NYC, with the other in Boston.
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. His goal in building the company was to spend 3 years building value and find a good home for the engineers and product.
Steve Blank
AUGUST 5, 2014
Being a physicist-turned-engineer, I have very little experience working with anything but men. I was on the way to my lifetime IRR of 90%. Not thinking about it earlier was a survival strategy—because if I’d thought about it, I’d have wanted to TALK about it, and that would have been stupid. I was working and competing with men daily.
Occam's Razor
OCTOBER 14, 2014
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%). Any big shifts in investment (marketing, customer experience, team sizes, tools). Outcomes of the conversations with your Finance team and Sr. And other such things. My advice to you above is perhaps a bit primitive.
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