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. Intel under their last two CEOs delivered more revenue and profit than any ever before. They knew how to execute the current business model.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Tim Keane

JANUARY 12, 2010

Bottom Up Market Sizing » January 12, 2010. Good investors use the valuation discussions to gauge the business savvy of the management team and to understand their ability to appreciate and deal with economic market forces that set values.   Internal Rates of Return naturally compound, so a 50% IRR is 7.59

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

SoCal CTO

MAY 19, 2010

For example, TCA’s evaluation criteria first bullet is: A market opportunity sufficiently large to create a business that can grow to at least $50 million in annual revenues. 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.

Hockey Stick 205

Hockey Stick NPV IRR Valuation 205

Both Sides of the Table

MAY 19, 2018

When you raise money from investors you produce information that you are told they want and care about: A fund-raising deck that articulates your company strategy, plans, team, market, competitors and so forth. These collective sets of documents form the basis of what somebody looking at investing would call “financial due diligence.”

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

David Teten

NOVEMBER 17, 2011

Projections were based on dozens of operational assumptions related to pricing, production, marketing spend, etc. Market assumptions including market share and macroeconomic data were also in order. In banking, a lot of my time was spent on modeling cash flows.

Employee 155

Employee IRR Startup Mexico 155

Growthink Blog

MAY 21, 2014

Some suggested that the blame for this lied more with the very difficult market and deal conditions of the past decade than with the VC investment model itself. A wise man once said that all businesses fundamentally do is “bridge the gap” between markets for labor and those for products and services. Investment Flexibility.

San Diego 72

San Diego Warrant IRR Investment Bankers 72

Ben's Blog

AUGUST 17, 2020

OH in South Park, San Francisco (or on Zoom from Big Sky, Montana): “OMG, crazy – that firm just paid 100x revenue to invest in [insert hot startup here] – what could they be thinking?” A multiple is a company value divided by a metric. cash flows beyond that forecast period).

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

crowdSPRING Blog

AUGUST 7, 2011

In addition, as long as investors can earn higher returns on T-notes, they will expect higher returns from alternative investments in equities and VC’s may follow suit for similar reasons and expect a higher IRR from their invest,ends in new ventures. Uncertainty may abate. Tax increases may be ahead. Photo: Kevin Krejci.

Small Business 86

Small Business IRR Government United States 86

Feld Thoughts

JULY 31, 2013

Over the last decade, I’ve gotten to know Dan, watched as he’s built an incredible $6 billion market cap company headquartered in Boulder, while contributing relentlessly to the Boulder startup community. Today, Zayo has eclipsed $1.1Bin revenue and $600M in EBITDA, leading to an estimated Enterprise Value in the vicinity of $6B.

Bandwidth 147

Bandwidth Colorado Startup IRR 147

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. The Valley has obsessed with a quick up-and-to-right momentum story because we were thought to live in “winner take most” markets.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

Seeing Both Sides

APRIL 10, 2011

In May 1996, Open Market completed a successful IPO and more than doubled on the first day of trading, ending with a $1.2 billion market capitalization. million in revenue the year before. . Matrix had a fund in 1998 that yielded an eye-popping 514+% IRR. We had recorded $1.8

IPO 48

IPO IRR Brazil Government 48

Up and Running

AUGUST 19, 2014

what’s behind your financials, your go-to-market strategy, your current traction in the marketplace, your competition and why you’re better, your intellectual property or “secret sauce,” your exit strategy, etc.). What follows next are projections and marketing plans—every start-up has them of course. Tweet This Tip.

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

Steve Blank

JUNE 11, 2013

Sigh… What I should have been hearing is the search for the business model, specifically the progress on product/market fit, but I hear the fund raising story first at least 90% of the time. 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?

Venture Capital 334

Venture Capital IRR Liquidity Event Business Model 334

Steve Blank

JUNE 11, 2013

Sigh… What I should have been hearing is the search for the business model, specifically the progress on product/market fit, but I hear the fund raising story first at least 90% of the time. 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?

Venture Capital 226

Venture Capital IRR Liquidity Event Business Model 226

The Next Web

DECEMBER 16, 2012

Then we’ll look at the different types of buyers in the market, and what that can mean for the final sale price of a site. For all their variation, the valuation approaches we see in use generally fall into three main categories: they’re based on income, assets, or the market itself. Market approach. Common methodologies.

Valuation 128

Valuation NPV Net Present Value IRR 128

Hunter Walker

FEBRUARY 25, 2018

Especially with founders who are in markets where they start earning revenue very early in a startup’s lifecycle, they sometimes choose to “fund” their business using this revenue and then go out when ready for a Series A. Our J Curve and early IRR may look worse than other funds.

Product 82

Product IRR LP Seed Stage 82

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. These mutual funds “mark-to-market” every day, and fund managers are compensated periodically on this performance.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

K9 Ventures

NOVEMBER 30, 2008

The expectation is that while venture investments are more risky than other forms of investments (though that is open to speculation in the current financial meltdown), they also typically have a high Internal Rate of Return (IRR). For what I’ve seen/heard the tops VC funds typically have an IRR of over 20%.

IRR 48

IRR Venture Capital LP Early Stage 48

VC Cafe

JULY 2, 2012

Lots of returns are being made these days, but the latest CalPers report shows dissapointing returns by Israeli VC firms , with an IRR of 3.5%-3.8% a developer of real-time location systems for the healthcare and industrial market. This month’s trend continues to be acquisitions of Israeli firms by large US corporates. Facebook Inc.

Latvia 109

Latvia Lithuania Russia 109

David Teten

NOVEMBER 23, 2020

It provides users in emerging markets mobile access to their financial lives, who were previously typically not served by financial institutions. In an article you wrote for Techcrunch in 2019 about Revenue Based Investing you mentioned that “ traditional equity VC is biased structurally against some women and underrepresented founders”.

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60