Up and Running
DECEMBER 22, 2015
My personal favorite in the “pure nonsense category” is the IRR, the Internal Rate of Return , something that was interesting for about one hour as part of the MBA curriculum, but which has no relevance in the real world. Angel investors are not impressed by projections of 30-40-50% or more profits on sales.
David Teten
JANUARY 19, 2021
Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.” Typically stable, high margins; repeatable sales model; clear path to profitability; and high growth potential. Typical business model.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Both Sides of the Table
MAY 24, 2021
It has historically been the case that VCs would rather fund the promise of 100x in a company with almost no revenue than the reality of a company growing at 50% but doing $20+ million in sales. This “overnight success” was first financed in 2004. This is true in consumer but it’s also true in enterprise software.
Steve Blank
MARCH 4, 2014
Staff functions in finance, human resources, legal departments and business units developed Key Performance Indicators, processes, procedures and goals to measure, control and execute. Finance The goals for public companies are driven primarily by financial Key Performance Indicators (KPI’s). This is a big idea. What Does this Mean?
David Teten
NOVEMBER 23, 2020
Clients typically use it to create and strengthen local community initiatives: bake sales, barbeques, political organizing, etc. . – Forte has developed an innovative structure to finance vocational reskilling at no cost to individuals or governments. Goldman Sachs bought Clarity for ~$100m. . Firm revenues. adult/NSFW content.
Tim Keane
JANUARY 12, 2010
For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing. Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors. . (If you plug in an IRR of 58.5%
Up and Running
JUNE 17, 2013
I find myself mildly offended by the idea that I’m supposed to give real importance to numbers for five years in the future produced by unbelievably high sales projections coupled with unbelievably high profitability rates and linked with hypothetical valuations based on high multiples of sales or profits.
Expert insights. Personalized for you.
60 
Let's personalize your content