Both Sides of the Table

OCTOBER 17, 2019

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! Gregg was built to scale large companies and build the processes and team to enable it.

IP 223

IP Intellectual Property IRR Cofounder 223

Startup Professionals Musings

NOVEMBER 11, 2010

In addition, most venture capitalists want startups that have clearly defined economies of scale (such as software companies) vs. ones that scale linearly with some factor (such as service companies). Another rule of thumb is a target of 50% IRR (a discounted cashflow calculation). Angels are less type-focused. Expected return rate.

IRR 225

IRR Startup Term Sheet Angel Investor 225

Feld Thoughts

JULY 31, 2013

Howard was at Level 3 at the time – they had acquired his previous company Corporate Software (which I was an investor in) – and he knew Dan through that experience. Our equity IRR has averaged around 50% since inception. Our biggest customers are the wireless carriers and big content/Internet companies. We raised $2.7B

Bandwidth 147

Bandwidth Colorado Startup IRR 147

Steve Blank

AUGUST 5, 2014

I was on the way to my lifetime IRR of 90%. From electric cars to drones, DNA sequencing to robotic surgery, enterprise software to social media –the size and variety of these markets makes the Valley of my early days look bush league. I loved the business, and I was good at it. But then, trouble. There’s no end in sight.

Venture Capital 333

Venture Capital Silicon Valley Chicago Cofounder 333

Professor VC

MARCH 10, 2009

His latest venture, Bharosa, was sold to Oracle for a 6X multiple in 3 years to his angel investors, a sweet close to triple digit IRR. Jon Fisher purposely avoided raising venture capital in his ventures. His goal in building the company was to spend 3 years building value and find a good home for the engineers and product.

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Software Review 28

Ben's Blog

AUGUST 17, 2020

Imagine there is a hot, bottoms-up $60M revenue B2B software company raising at a $4B valuation. If an investor could have identified Salesforce’s ability to maintain such prolonged growth upfront, invested in its 2004 IPO, and then held on through to today, they could have made ~70x returns: equivalent to ~30% IRRs over a 16 year period.

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

Growthink Blog

MARCH 29, 2010

Implement that new software. Startup investing has outperformed every major investing class, with IRRs of over 27.3% (click here to learn more). Grow A Business. If you own or manage an existing business, go for it. Launch that new product. Offer that new service. Try that new marketing strategy. Apply for that bank loan.

IRR 59

IRR Entrepreneur Washington Government 59

Up and Running

MARCH 6, 2019

They remind me of the old days when every software package claimed to be user-friendly (and mine was the only one that really was). But don’t quote me a damned IRR. I mind all these trendy buzzwords that everybody applies. Not just disruptive , but also game changing , market-leading , and viral , and pivot. Not discounted cash flow.

Net Present Value 87

Net Present Value Forecast IRR Oregon 87

David Teten

AUGUST 21, 2019

Ali Hamed observes that “software companies are blessed with high margins that allow them to payback expensive capital. The RBI investor is motivated to help the company grow because that speeds up the pace of revenue payback, and therefore IRR. Much lower cost of capital, if company is highly successful. Aligned incentives.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Both Sides of the Table

MAY 24, 2021

This is true in consumer but it’s also true in enterprise software. as measured by MOIC, TVPI and IRR and by sources that don’t reveal the underlying data and who themselves have to rely on incomplete datasets. Case in point, Procore just went public and is trading at an $11 billion valuation.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

Occam's Razor

OCTOBER 14, 2014

Leaders (company is leaving China, our IPO is next week, 1,800 new stores are being opened in 180 days, our new IRR is 8%). Any big shifts in investment (marketing, customer experience, team sizes, tools). Outcomes of the conversations with your Finance team and Sr. And other such things. My advice to you above is perhaps a bit primitive.

Analytics 133

Analytics Vertical Metrics Web 133

David Teten

OCTOBER 15, 2013

ff Venture Capital has consistently generated a gross IRR on invested capital in excess of 30%, in a world where the average ten-year returns for venture capital firms are in the single digits. Software is eating every industry, including the entrepreneurial ecosystem itself. Now we can.

Venture Capital 114

Venture Capital Accredited Investor IRR Later Stage 114

Up and Running

MAY 2, 2012

They remind me of the old days when every software package claimed to be user friendly (and mine was the only one that really was). . But don’t quote me a damned IRR. I don’t mind the technical jargon and buzzwords as much because people know they have to explain them. Internal rates of return and net present value.

Net Present Value 142

Net Present Value IRR Texas Global 142

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% Facebook’s acquisition of Face.com will enable the social network to embed face recognition software into its photo app. SHUTTERFLY ACQUIRES ISRAELI PHOTO SOFTWARE COMPANY PHOTOCCINO.

Latvia 109

Latvia Russia Lithuania 109

David Teten

NOVEMBER 23, 2020

– Interaxon Muse sells a brainwave-controlled computing technology and applications, and a hardware/software platform that converts brain waves into digital signals for meditation, games, sleep improvement, and disability assistance. Traditional KPIs are, in descending order of importance: IRR (and secondarily Multiple).

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60