Remove IRR Remove Lean Remove Sales
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Why Companies are Not Startups

Steve Blank

A consequence of using these corporate finance metrics like RONA and IRR is that it ‘s a lot easier to get these numbers to look great by 1) outsourcing everything, 2) getting assets off the balance sheet and 3) only investing in things that pay off fast. It needs the tools and processes pioneered in Lean Startups. What to Do?

IRR 335
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What Did I Learn From the First VC Check I Ever Wrote?

Both Sides of the Table

An example was that while we were in the seed round at Ring and followed in the A, B, C and D … we were also able to lean into the E round when Jamie really wanted to scale up his funding and the final check was still > 420% IRR! Why does that matter?

IP 223
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As Populist as it May Feel, 98% of VCs Aren’t Dumb

Both Sides of the Table

The better way to think about VC returns is, do the firms consistently beat alternative asset clases on an IRR basis to adjust for the increased risk and lack of liquidity? Nothing was more heart warming than the photo of David Karp hugging Bijan Sabet after the sale to Yahoo! Here the data is not always kind to VCs.

LP 374
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Fund Raising is a Means Not an End

Steve Blank

These are great, but they are not repeatable by a sales organization. The test is: If you add one more sales person or spend more marketing dollars, does your sales revenue go up by more than your expenses? • Business model : A business model answers the basic questions about your entire business: Who are the customers?

article thumbnail

Fund Raising is a Means Not an End

Steve Blank

These are great, but they are not repeatable by a sales organization. The test is: If you add one more sales person or spend more marketing dollars, does your sales revenue go up by more than your expenses? • Business model : A business model answers the basic questions about your entire business: Who are the customers?