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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

This causes the cost of capital for Flexible VC, often calculated through IRR (similar to an interest rate), can be higher than that of venture debt or traditional RBI. Coinvestors: Flexible VC terms have not been standardized, which may make the investment harder to syndicate. 20-30% is a common target IRR for investors.

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A trial balloon: How large corporates can coinvest with their employees’ angel investing

David Teten

Angel investing is an exceptionally high-return asset class; I have collected twelve studies on angel returns in the US and UK, which show median internal rate of return (IRR) between 18 and 38 percent. – If an employee wants to invest at least $25K in a private company, she can nominate it to the Syndicate VC (“SVC”).