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10 Things I Hated About Your Business Pitch

Up and Running

But don’t quote me a damned IRR. I hate hearing about a $43 billion market, and even more so when you present a sales forecast validated by getting some percentage of that market. Most investors hate the forecasts that start with a huge number and take some small percentage of that number as potential sales.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

In all these cases, capital is provided to fuel forecasted growth without creating a commitment to a particular vision for future funding rounds, exit goals, and associated blitzscaling. 20-30% is a common target IRR for investors. The State of Flexible VC. If a company exceeds projected revenues, the effective rate increases.

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Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

Both Sides of the Table

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. Investors love to be able to see what you told them in forecasts in prior years and then compare with how you actually performed.

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Angel Investment Criteria

SoCal CTO

In his recent post, Top 10 Ways to Win a Business Plan Competition , he says: #4 I wanted to push this further down the list, but I just bristle at this: the revenue forecast. Remember my day job, I'm past Chairman of the Tech Coast Angels and I see a lot of pitches with revenue forecasts. These are so detached from reality.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

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

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10 Things I hated About Your Business Pitch

Up and Running

But don’t quote me a damned IRR. ” I hate hearing about a $43 billion market, and even more so when you present a sales forecast validated by getting some percentage of that market. I’ll judge your projections for realism and credibility, but that’s sales, costs, expenses, cash flow, and other basic numbers.

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When Entry Multiples Don’t Matter

Ben's Blog

But, accurately forecasting the size, timing, and risk of cash flow over many years can be incredibly challenging, so many investors often rely on valuation multiples as a proxy for determining what a company is worth. cash flows beyond that forecast period). It starts with the complexity involved in valuing companies in general.