Startup Professionals Musings

MAY 9, 2014

Of course, both are significant, but according to Rose, angel investing is as poised as crowd funding to take off due to the same online technology, and there is plenty of opportunity for both. 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.

Angel Investor 278

Angel Investor Angel Groups Accredited Investor IRR 278

Version One Ventures

SEPTEMBER 22, 2021

3x the invested capital net of fees over a period of about ten years for a net IRR in the low twenties). The opportunity for tech has never been larger and it seems obvious that technology companies will be the growth story for the next decade. So, is 10x the new 3x ?

Venture Capital 201

Venture Capital IRR Private Equity Seed Stage 201

Startup Professionals Musings

JUNE 5, 2015

Of course, both are impressive, but according to Rose, angel investing is as poised as crowd funding to take off due to the same online technology, and there is plenty of opportunity for both. There is a rarified brand of successful investors who can show average IRRs of 25 percent or greater over the years. billion collected in 2014.

Angel Investor 120

Angel Investor Angel Groups Accredited Investor IRR 120

David Teten

JANUARY 19, 2021

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. Early-stage: Cofounder with engineering/ product background from top-tier university or major technology company. Technology-centric businesses.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Steve Blank

MARCH 31, 2014

Unfortunately as we’ve learned from recent experience, using Return on Net Assets and IRR as proxies for efficiency and execution won’t save a company when their industry encounters creative disruption. Today billions of dollars that companies could have invested in innovation are sitting in the hands of private equity funds.

Private Equity 328

Private Equity Metrics China Intellectual Property 328

View from Seed

JULY 15, 2020

This may not hurt the ultimate exit value of these companies, but the passage of time will hurt the fund’s ultimate IRR. Finally, public technology companies have largely been on a tear, creating optimism about the long-term prospects for the tech industry overall. Reshuffling the deck.

Portfolio 215

Portfolio IRR Dilution Distribution 215

Seeing Both Sides

SEPTEMBER 26, 2010

Thanks to their position as the wolf, founders (and angel investors) can often get liquidity from their late stage investors (particularly through Digital Sky Technologies – a Russian Bear in the transaction mix?). . But the VCs, and in turn their LPs, are left holding an illiquid bag.

IRR 36

IRR IPO Entrepreneur LP 36

Startup Professionals Musings

FEBRUARY 5, 2018

As an active angel investor, I’m accustomed to hearing entrepreneurs pitch their expectation to quickly create a new dominant brand, based on their disruptive technology. Investors measure their success by looking at the internal rate of return (IRR). Only recently, I realized that times are rapidly changing.

IRR 143

IRR Marketing Startup Angel Investor 143

Both Sides of the Table

OCTOBER 17, 2019

Invoca is now doing 10s of millions in recurring revenue and is growing > 75% year-over-year but it took the first 3 years to really build out the technology and acquire our initial enterprise clients. VC is a long-term business Some businesses are overnight successes but few of them really move immediately up and to the right.

IP 223

IP Intellectual Property IRR Cofounder 223

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. Here are four reasons: First, companies bought into the false premise that they exist to maximize shareholder value – which said “keep the stock price high.”

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Tim Keane

JANUARY 12, 2010

If you look at the spreadsheet, you will see that the “Required Rate of Return” is expressed as an IRR.   Internal Rates of Return naturally compound, so a 50% IRR is 7.59   (If you plug in an IRR of 58.5%   Internal Rates of Return naturally compound, so a 50% IRR is 7.59 times at 5 years and 11.39

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

This is going to be BIG.

DECEMBER 28, 2013

My total valuation multiple across that span is nearly 4x and the return rate is up over 110% IRR. Venture Capital & Technology' I''ve closed on about 20 early stage investments and, by comparison, 5 of my investments are now worth $40 million or more either via financing or exit (with three more over $25 million). That''s 25%.

Venture Capital 164

Venture Capital Cofounder IRR Dilution 164

Steve Blank

AUGUST 5, 2014

I liked meeting people, hearing the company plans, learning about their technology, figuring out if it was for real—all that was fun. I was on the way to my lifetime IRR of 90%. So I did something completely crazy and unplanned—which looks brilliant only in hindsight! How could I do that for a living? But then, trouble.

Venture Capital 334

Venture Capital Silicon Valley Chicago Cofounder 334

Both Sides of the Table

MAY 25, 2013

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? On the enterprise side, I know every buyer of technology in this industry. You invest across many funds just as VCs invest across many companies.

LP 374

LP Later Stage IRR Term Sheet 374

David Teten

AUGUST 21, 2019

The RBI investor is motivated to help the company grow because that speeds up the pace of revenue payback, and therefore IRR. Borchers points out: “Only 50% of our investment activity involves technology-based businesses. Aligned incentives. This is similar to the incentives of a traditional equity VC, but unlike traditional lenders.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Seeing Both Sides

APRIL 10, 2011

If investors observing this extraordinary phenomenon in 1996 were to have concluded that the technology market was in the midst of an unsustainable bubble, they would not have been wrong. Matrix had a fund in 1998 that yielded an eye-popping 514+% IRR. billion market capitalization. We had recorded $1.8 Wouldn’t that be something?

IPO 48

IPO IRR Brazil Government 48

Both Sides of the Table

MAY 24, 2021

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. also wins by making sure we don’t have too much concentration in technology innovation, which is surely a great thing for us all. And the fifth?—?society?—?also

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

VC Cafe

MARCH 8, 2010

TriVentures II , a $25 million medical device fund (with American medical technology company Medtronic Inc. 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. as its main investor). billion (net management fees and operational expenses).

IRR 74

IRR Venture Capital Institutional Investors 74

Ben's Blog

AUGUST 17, 2020

While both earnings and EBITDA multiples are widely used, we often see investors in public and private technology companies resort to revenue multiples (enterprise value / revenue). Two common public markets multiples are earnings multiples (price per share / earnings per share) and EBITDA multiples (enterprise value / EBITDA).

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

Startup Professionals Musings

MAY 9, 2011

But that one fell victim to rapidly developing technologies, the recession, and the collapse of the consumer electronics market, and is unlikely to return a significant profit. David: The exponential development of technology has begun to cause deep and fundamental changes to the world of early stage finance.

New York 221

New York Accredited Investor Advisory Board IRR 221

The Next Web

DECEMBER 16, 2012

Income-based valuations consider aspects like CAPM (capital asset pricing model), IRR (internal rate of return), NPV (net present value), WACC (weighted average cost of capital), NCF (net cash flow), and GAAP (generally accepted accounting principles). The secondary drivers are the site’s age and the technologies on which it’s built.

Valuation 128

Valuation NPV Net Present Value IRR 128

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% has acquired Israeli face recognition technology developer Face.com for $100 million. Paradigm also offers technology that processes data gathered from underground sensors.

Latvia 109

Latvia Lithuania Russia 109

abovethecrowd.com

APRIL 20, 2016

In late 2015, many public technology companies saw a significant retrenchment in their share prices primarily as a result of a reduction in valuation multiples. In Q1 of 2016 there were zero VC-backed technology IPOs. Do you feel the need to raise more capital quickly before the prices erode further and bring down your IRR?

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

David Teten

NOVEMBER 23, 2020

Numerous thoughtful people are worried about how technological disruption will destroy jobs. The classical economist response is that technological disruption also creates new jobs, e.g., “video game designer”. – Starship Technologies sells an autonomous robot-powered local delivery service. And of that 1%, less than 0.1%

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60