Trending Sources

Golden Angels Announces IRR Results

Tim Keane

It’s not very often that angel networks disclose results. Most of us are ready and willing to discuss our approaches, beliefs or methods, but usually stop well short of providing the proof of our assertions. Today, Golden Angels is publishing. Funding startups

IRR Multiplication Table

Will Price

The attached IRR Multiplication Table is a very useful reference tool. The data table calculates IRR by years (x-axis) and multiple (y-axis).

IRR 1
IRR 1

The IRR of Simplicity

Austin Startup

September 5, 2016: Some recent successful exits in Austin have caught my eye for the relative simplicity of their business models.

Investors: Don’t believe your ROI projections

Up and Running

And Internal Rate of Return (IRR)? Finance angel investment IRR ROI venture capital Flash: investors don’t believe your ROI projections. News at 11. Why is this news? It shouldn’t be. As the session got into open-ended questions, I was surprised, and even shocked, by a frustration shared by several of the entrepreneurs.

How do VCs measure their success (and why you should care)?

Hippoland

A common intermediary milestone for most investors is IRR (internal rate of return) of the fund. So there are a lot of unrealized gains built into the IRR of an early fund. Furthermore, we’ve established that companies don’t get credit for revenue — this does not get factored into IRR calculations. Equity rounds of $10m pre.

IRR 24

Venture Outcomes are Even More Skewed Than You Think

Seth Levine's VC Adventure

The typical “successful” venture portfolio is often described as having the following outcome: 1/3 of companies fail. 1/3 of companies do well.

IRR 56

The Trouble with Venture Capital Data

This is going to be BIG.

Sounds like a huge amount, but only later does he say that only " 476 funds which had known Net IRR values, the overwhelming majority of which were from vintage 2002, or more recently." 3) You can't eat IRRs for breakfast. You know what the IRRs of Quirky and Fab were before they went to zero? What is this? Really really big.

IRR 25

Angel Investors Are Still The Lifeblood Of Startups

Startup Professionals Musings

There is a rarified brand of successful investors who can show average IRRs of 25 percent or greater over the years. Neither does David S.

5 Things Startups Can Learn from Angel Investors

Up and Running

Read more of my articles related to this topic: You Can Take That IRR and Shove It. We don’t just reject startups; we explain why. Forget it.

What I'm Reading This Sunday Morning

A VC : Venture Capital and Technology

To measure the efficiency of doing this, we redefined profit not as dollars, yen or renminbi, but as ratios like RONA (return on net assets), ROCE (return on capital employed) and I.R.R. A Capitalist's Dilemma by Clayton Christensen. In contrast, America is generating many fewer empowering innovations than in the past.

IRR 79

Fund Raising is a Means Not an End

Steve Blank

What is an IRR? Not all that glitters is gold. William Shakespeare. That’s a big mistake. When I asked, “What are you working on?”

IRR 154

Venture Outcomes are Even More Skewed Than You Think

Seth Levine's VC Adventure

The typical “successful” venture portfolio is often described as having the following outcome: 1/3 of companies fail. 1/3 of companies do well.

IRR 42

Current Startup Market Emotional Biases

Feld Thoughts

As Bill points out, many funds are sitting on huge paper gains which translate into large TVPI, MOC, gross IRR, or whatever the current trendy way to measure things are. Bill Gurley wrote an incredible post yesterday titled On the Road to Recap: Why the unicorn financing market just became dangerous … for all involved. But why? Period.

7 Criteria To Help Startups Find The Right Investor

Startup Professionals Musings

VCs will be looking for a 10X return on their investment in 3 to 5 years, or 30% annual IRR (Internal Rate of Return). Marty Zwilling.

What to Expect When You're Expecting Venture Capital Returns

This is going to be BIG.

If you're following on in the A round, then you shed a full 500 basis points on your IRR. Time is the enemy of IRR. It's not perfect.

As a VC or angel investor, how has your approach to investing changed over time?

Gust

Having now invested in over 85 startups, and finding that my personal metrics are very similar to aggregated industry ones, it is clear that (a) there is little to no correlation between my home runs and my personal favorites, and (b) angel investing done correctly really *can* produce a consistent IRR in the 25%-30% range.

How Smart Entrepreneurs Select VC / Angel Investors

Startup Professionals Musings

VCs will be looking for a 10X return on their investment in 3 to 5 years, or 30% annual IRR (Internal Rate of Return). Marty Zwilling.

Crowd Funding Has Not Killed Angel Investing Yet

Startup Professionals Musings

There is a rarified brand of successful investors who can show average IRRs of 25 percent or greater over the years. billion collected in 2012.

IRR 60

5 Ways to Vet an Incubator

Fresh Inc.: The Staff Blog

3) The IRR of the firm. Beyond IRR, look at the quality of the engineering talent on-boarded by graduates of the program.

IRR 20

Cost ratios as a measure of fund efficiency

The Equity Kicker

Fund managers are assessed, in part, on their ratio of expenses to assets under management. Therefore, the lower the expense levels the better.

IRR 20

Valuations 101: The Venture Capital Method

Gust

Based on the Wiltbank Study, investors should expect a 27% IRR in six years. We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors. in the case of one investment round, no subsequent investment and therefore no dilution). million.

Why Companies Stop Innovating

Fresh Inc.: The Staff Blog

Unlike with startups, larger companies'' emphasis on execution often stifles innovation. The question is: Why? This is a big idea. What Does this Mean?

IRR 46

"One explanation for the correlations we’ve seen is that firms with the best deal flow and."

Mark Birch

VC venture capital IRR fund size asset class investing“One explanation for the correlations we’ve seen is that firms with the best deal flow and track records tend to be able to raise larger funds. In that case, the performance advantages they enjoy may be owed to their personal networks and not to fund size.” - “ Does Fund Size Matter? ”

IRR 0

7 Key Drivers to the Best Investor For Your Startup

Startup Professionals Musings

Another rule of thumb is a target of 50% IRR (a discounted cashflow calculation). The money is the same color in either case. Type of startup.

IRR 59

ESADE Business School Commencement Speech

Steve Blank

President Bieto, Dean Sauquet, members of the faculty, distinguished guests, and ladies and gentlemen….Thank Thank you for the kind introduction.

IRR 149

Why It Could Make Sense for Instagram to Take Sequoia Funding During Facebook Acquisition Talks

Christine.net

Investors win either way - an instant 2X multiple on investment (and a crazy high IRR), or a highly desirable company that they believe has growth potential. Debate is already starting around Instagram's recently-announced acquisition by Facebook. The round was led by Sequoia, as first reported by AllThingsD’s Liz Gannes. "Investors,

IRR 23

The VC Shakeout

Venture Chronicles

Over the past 10 years their quarterly internal rate of return (IRR)—the primary measure of VC success—was dismal, hovering in the single percentage points and sometimes dipping into negative territory. Tags: Uncategorized VC IRR This piece in HBR is must read, it details why there will be a lot fewer VC funds in the future.

IRR 0

More Cash for Entrepreneurs, Crowdfunding, and Indiegogo

David Teten

One last point: the 27% IRR calculation I referenced above is from the Kauffman Foundation for angel investors in groups. Start now! *

Qualities of an Awesome Investor

Dshen

Here they are below: Track record, increasing IRR, value of startups in portfolio to date. Some of our team and I were having a chat about what does it take to be an awesome investor. On this background, I set out to try to raise a venture fund in 2006. Managing investments".what what did that mean exactly? Exits! Ability to negotiate deal.

LP 18

10 Things I hated About Your Business Pitch

Up and Running

But don’t quote me a damned IRR. I’m writing this in the airport on my way to Austin, TX., where I’m going to be a judge at the University of Texas Venture Labs global business plan competition (used to be mootcorp). I’m talking about the 10-20 minute slide presentations and accompanying questions and answers. .

IRR 42

Zayo Group – One of Boulder’s Amazing Startup Stories

Feld Thoughts

Our equity IRR has averaged around 50% since inception. I’m intensely proud of both the amazing startup community in Boulder as well as the many significant companies that have been – and are being – created in the little town of 100,000 people I call home. Dan Caruso, the co-founder/CEO of Zayo Group , is one of them.

Return profile of VC investments shows why home runs are key

The Equity Kicker

This LP is one of the more successful ones, they have positions in many of the top funds and have achieved a very comendable IRR from their investments in venture funds (well north of 20%, which is great as an average). So think of the following as the profile of a successful fund rather than an average fund. So, to the data. Exits

LP 16

Israeli VC Funds Struggled to Raise in 2009

VC Cafe

The Carmel I Fund, raised in 2000, had the highest performance, giving an internal rate of return (IRR) of 8% and a positive multiple of 1.4.

IRR 1

Pioneering Women in Venture Capital: Kathryn Gould

Steve Blank

I was on the way to my lifetime IRR of 90%. I met Kathryn Gould longer ago than either of us want to admit. Her response? ——-.

How to Impress Angel Investors and Make It into “Startup Heaven”

Up and Running

Forget the stupid IRR (that’s internal rate of return) that they taught you in business school. Skip ahead and leave it in the comments.

Brief Thoughts on Angel List, "Social Proof", "Spray & Pray", & The Network Effects of Large Scale Investing

500 Hats

 in fact, it is incredibly hypocritical and patently FALSE for the VC industry -- which has NEGATIVE IRR over the past 10 years, and historically poor performance -- to criticize high-volume strategies as being somehow crazy. sorry little monsters, next time ;). 3 major points i plan to cover in this post: 1) Angel List Fucking Rocks.

IRR 69

Should You Sell Your Business? How to Make the Tough Call

Fresh Inc.: The Staff Blog

If the IRR is greater than the company’s cost of capital, the project would create value and theoretically should be completed. Why not?

IRR 10

What if it’s 1996, not 1999?

Seeing Both Sides

Matrix had a fund in 1998 that yielded an eye-popping 514+% IRR. billion market capitalization. We had recorded $1.8

IRR 30

Steve Blank on the Next 50 Years of Business Innovation

Fresh Inc.: The Staff Blog

President Bieto, Dean Sauquet, members of the faculty, distinguished guests, and ladies and gentlemen…Thank you for the kind introduction.

IRR 49

How and Why To Be an Angel Investor

David Teten

Dave Kerpen, founder and CEO of Likeable Local , just published an interview with me on Linkedin, which I’ve included below. Time Period. Study.